21 An investment banker overprices an issue in order to satisfy the corporate issuer
True False
22. An investor in a new issue should be somewhat skeptical when the new funds are being used to buy out
old stockholders or to acquire property from existing stockholders.
True False
23. The study by Barry and Jennings of new stock issues indicates that 90 percent of the gain occurs in the
opening transaction.
True False
2
24. The requirements for an exchange listing tend to be highly restrictive.
True False
25. The delisting of a stock from the New York Stock Exchange tends to have a neutral effect on the stock
on the last day of trading. However, the stock normally has downward movement approximately six
months later.
True False
USA 
India