Question

Which of the following statements about Initial Public Offerings are TRUE? IPOs are less risky than a typical stock market investment (i.e. investing in McDonald's or Coca-Cola) since they are typically smaller companies An IPO occurs when a private company sells stock to the public for the first time When an IPO occurs, a company raises money from public investors that they use to grow their business IPOs are risky investments since the company going public often has a limited track record of performance One benefit of “going public (another term for an IPO)” is that a public company has less regulation than a private one

Answer 1

An IPO occurs when a private company sells stock to the public for the first time TRUE INITIAL PUBLIC OFFER: IPO The private public is going to sale public shares for the first time.

Step-by-step explanation:

One benefit of “going public (another term for an IPO)” is that a public company has less regulation than a private one

FALSE the regulation increase.

IPOs are less risky than a typical stock market investment (i.e. investing in McDonald's or Coca-Cola) since they are typically smaller companies

FALSE the companies going public are valued easily over 100 millions. They are not small.