The statement is False. For the IPO, all shares will be sold in the primary market. After that, investors would trade their shares in secondary markets such as the New York Stock Exchange and NASDAQ.
<h3>What are IPO and secondary markets?</h3>
After an IPO, a secondary offering takes place when an investor sells their shares to the public on the secondary market (IPO). An investor's secondary offering proceeds go to the investor personally rather than the firm.
One illustration of a primary market is an initial public offering or IPO. Investors have the chance to purchase securities from the bank that handled the first underwriting for a certain stock through these deals. When a private firm first sells stock to the public, it conducts an initial public offering (IPO).
No empirical data supports the claim that IPOs have outperformed secondary markets in terms of performance. However, increased regulation has made the market for IPOs safer and more lucrative.
The market where securities are traded is this one. Equity and debt markets are both included in the secondary market. In the main market, securities that have just been released by a corporation are made available to the general public.
The statement is False. For the IPO, all shares will be sold in the primary market. After that, investors would trade their shares in secondary markets such as the New York Stock Exchange and NASDAQ.
To learn more about IPO and secondary markets, refer to:
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