Unit 2 - Stocks Review (Week 1)

What does IPO stand for?

• Initial Private Offer

• Independent Public Officer

• Initial Public Offering

• Independent Public Opinion

True or False - Owning stock in a company means that you are a shareholder of the company.

• True

• False

True or False - You can invest in private companies on the New York Stock Exchange.

• True

• False

Check all that apply - Companies undergo an IPO in order to...

• go public

• list shares on a stock exchange

• raise capital

• consolidate control of the company

Check all that apply - Companies issue shares of stock to raise capital for...

• research and development

• paying off debt

• expanding the company

• hire more employees

True or False - A public company can become private again by buying back a controlling share (51% or more) of their outstanding stock.

• True

• False

What does the acronym SEC stand for?

• Securities and Exchange Commission

• Securities and Equity Commission

• Stocks and Exchange Commission

• Stock and Equity Commission

True or False - The SEC protects businesses from consumer overreach and overwhelming legal challenges.

• True

• False

True or False - Companies seeking to go public manage the IPO process internally with little to no counsel.

• True

• False

Check all that apply - The following are steps in the IPO process.

• Filing with the SEC

• Pricing shares of stock

• Hiring a large investment bank/firm

• Buying back shares of stock