19. When a company decides to file an IPO, they must file a registration stateme

Question

19. When a company decides to file an IPO, they must file a registration statement with the Securities and Exchange Commission. The most important sections of the registration statement are distributed to investors in a very comprehensive form called a: A. IPO Facilitation Agreement B. A Blue Sky Document C. A10-Q Filing D. A Prospectus 20. As part of an IPO, the company and the underwriter decide at what price to make the initial offering. Very often, as soon as the stock becomes available, the price will increase very quickdly. This process/event is often referred to as: A. Underpricing B. Subterfuge C Collective Bargaining D. Capital Gain 21. Portfolios that offer the highest expected return for any level of risk are called A. Diversified portfolios B. Efficient portfolios C Linear programming 22. The Sharpe ratio provides a measurement of: A. Variance to correlations B. Return to risk C Risk premium to standard deviation D. Interest rates to stock returns 23. An indexed portfolio is: A. Stocks are purchased in alphabetical order B. Stocks are purchased consistent with the prior quarter C Stocks are routinely adjusted to maintain the investors risk tolerance D. Is made up of mutual funds that track stock markets indexes 24. The beta of the overall market is A. 1.0 B. 0.5 C 1.0 D. 0.0 25 The market risk premium is defined as: A The stock's covariance with the risk-free rate B. The change in the stock's return for a given change in the market return C The difference between the market return and the risk-free interest rate D. The standard deviation on the stock's return.

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

19)

A prospectus is a legal document which is required to be filed by a company which wants to issue its shares to the public. The prospectus is first filed with the SEC and then made available to the general public for Investment. The prospectus provides details of the Business, financial performance, Growth prospects and any other information required by the investors

So, option D is the correct option

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