Quiz on lesson ” Investing in Initial public Offerings (IPOs) “

1. What is an Initial Public Offering (IPO)?

A) An offering of shares to the public by a successful private company

B) A sale of shares to the public by a failing private company

C) A sale of shares to the public by a government-owned company

2. Why do investors want to get in on the ground floor of an IPO?

A) There is evidence that they will make a profit

B) There is evidence that they will lose money

C) There is no evidence either way

3. Who is likely to get an allocation in the initial share offering of an IPO?

A) Retail investors with high-value relationships with their brokerage firm

B) Institutional investors

C) Retail investors with smaller or new relationships with their brokerage firm

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