Which of the following statements is FALSE? (Section 3.1)

Question

BlackTom AI · Accepted Answer

The question prompt asks which statement is FALSE, and the provided data includes only a single item in the 'answer' field: "The process of selling stock to the public for the first time is called a seasoned equity offering (SEO)." Unfortunately, the 'answer_options' array is empty, so there are no listed statements to evaluate against one another.

Given the content of the provided statement, we can analyze it conceptually: In corporate finance, an initial public offering (IPO) refers to a company selling its stock to the public for the first time. A seasoned equity offering (SEO) refers to a company that has already been publicly traded issuing additional shares to raise more capital. Therefore, the statement claiming that the first public-stock sale is called an SEO is incorrect because that term should be used for follow-on offerings by an already-listed company, not for the initial offering.

If there were multiple options, one would compare each option against the definitions: IPO vs SEO, distinguishing first-time offerings from subsequent seasoned issuances, and identifying any other statements that mischaracterize terms such as secondary offerings, rights offerings, or private placements.

With no options provided, we cannot perform a full option-by-option analysis, but we can clarify the key concept that the term SEO is not synonymous with the initial public offering.

FINANCE 351 Quiz 11 Raising Capital

Which of the following statements is FALSE? (Section 3.1)

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