Stage 5 Testing 2:True-False Statements
In this part of the test,you will read ten statements about the information presented in the lecture.First read the statement carefully.Then check your notes to decide whether the statement is true or false.If it is true,write a T in the blank space before the statement; if it is false,write an F in the blank.
1._______When a public company sells additional equities,the sale is not an IPO.
2._______Doing an IPO has always been popular with companies to raise funds since its creation.
3._______There were at least 54 IPOs in the United States during the period of 1998–1999.
4._______Alan Greenspan warned the investors of the approaching burst of the Internet bubble before the stock market collapsed.
5._______All the largest IPOs mentioned in the lecture were launched by companies in the financial sector.
6._______The capital raised in an IPO is called“free money”because the issuing company is not required to repay the capital to its investors.
7._______A company can offer stock ownership plans to its executives and employees only after it has gone public.
8._______When a public company wants to raise capital for business expansion,it has to go through the same process as it did in its initial public offering.
9._______It is unusual for a small company to pay $100,000 to prepare and publicize an IPO.
10._______Investors can easily find information about the profit margin,the return on common equity and the return on assets of a publicly traded company.