Question: Indicate whether the following statements are true or false. 1. Venture capitalists typically provide rst-stage nancing sucient to cover all development expenses. Second-stage nancing is

Indicate whether the following statements are true or false. 1. Venture capitalists typically provide rst-stage nancing sucient to cover all development expenses. Second-stage nancing is provided by stock issued in an IPO. 2. Underpricing in an IPO is only a problem when the original investors are selling part of their holdings. 3. Stock price generally falls when the company announces a new issue of shares. This is attributable to the information released by the decision to issue.

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