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In the early stages of an initial public offering a firm going public Select one: a

Finance Dec 09, 2020

In the early stages of an initial public offering a firm going public Select one: a. approaches an investment bank and forms the underwriting syndicate before shareholder approval is required for the initial public offering. b. the syndicate of underwriters will develop as a group of several underwriters with no one firm serving as a lead underwriter c. is required to receive approval from the Securities and Exchange Commission to go public before shareholders and management can produce a registration statement for the company's stock. d. will be subject to a thorough examination of the firm's financials and place in the market by the underwriting syndicate. e will often select the underwriting investment banks based on which investment banks ask to take the firm public.

Expert Solution

Option C is correct in early stages of IPO a firm needs to get permission from SEC to go pubic before shareholders and management can produce a registration statement for the company's stock

Option A is incorrect because shareholders' approval is required before approaching investment bank

Option B is incorrect because there are group of several underwriters but there will a lead underwriter among the group

Option D is incorrect because this will happen but not at early stages of the IPO

Option E is incorrect because the company goes to investment bank for IPO and it doesn't work other way

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