Select the true statement regarding Initial Public Offerings.

Group of answer choices

Since an IPO is a secondary market transaction, the issuing firm does not receive the proceeds.

The average return at the announcement of a secondary stock issue is 10%.

In the financial life cycle, an IPO is before any venture capital financing.

Companies generally issue secondary offerings before their IPOs.

On average, IPOs underperform the overall market and peer companies over the long-term (3-5 years).