Which of the Following Is True of an Initial Public

Multiple Choice

Which of the following is true of an initial public offering (IPO) ?

A) Buying an IPO stock is less risky than purchasing established companies in the secondary market.
B) An IPO stock can be sold later in the primary market.
C) An IPO's stock price may rise or fall rapidly on the first day.
D) An IPO represents a company that was just created within the last month.