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Which of the following statement is NOT correct? During IPOs, underwriters purchase shares from issuing firms...

Which of the following statement is NOT correct?

During IPOs, underwriters purchase shares from issuing firms and resell them

Both open-end and close-end fund shares can be traded

None of the above

There is a decrease in number of IPOs after 2000

Purchases of new issues of stock take place in the primary market

Solutions

Expert Solution

Both open-end and close-end fund shares can be traded - This statement is NOT CORRECT. Open-ended fund shares cannot be traded.

Underwriters purchase the entire issue upfront and resell them to investors.

There is a decrease in IPOs since 2000.

The issue of new stock is called the primary market.

jeff jeffy answered 3 years ago
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