If Pirate Recording Elects to Offer an Initial Public Offering

Multiple Choice

If Pirate Recording elects to offer an Initial Public Offering (IPO) , it will involve preparing full financial disclosure with the ________. The firm is advised to solicit the services of an investment banker/underwriter, who will analyze the market and determine the best price for the new issue of Pirate Recording stock. The offering will then be sold on the ________.

A) Internal Revenue Service; secondary market
B) Fair Trade Commission; primary market
C) Federal Trade Commission; secondary market
D) Securities and Exchange Commission; primary market