Question: Question 12 1 pts Select the true statement regarding Initial Public Offerings. Companies generally issue secondary offerings before their IPOs. The average return at the

Question 12 1 pts Select the true statement regarding Initial Public Offerings. Companies generally issue secondary offerings before their IPOs. The average return at the announcement of a secondary stock issue is 10%. Since an IPO is a secondary market transaction, the issuing firm does not receive the proceeds. In the financial life cycle, an IPO is before any venture capital financing. On average, IPOs underperform the overall market and peer companies over the long- term (3-5 years). - Previous Next >

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