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

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 2 years ago

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