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06-06-2023
Business

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Which of the following statements is FALSE regarding raising capital? O After deciding to go public, managers of the company work with an underwriter, an investment banking firm that manages the offering and designs its structure. Many IPOs, especially the larger offerings, are managed by a group of underwriters. O The shares that are sold in the IPO may either be new shares that raise new capital, known as a secondary offering, or existing shares that are sold by current shareholders (as part of their exit strategy), known as a primary offering. O At an IPO, a firm offers a large block of shares for sale to the public for the first time.

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