Of the following, which is LEAST likely to buy stock in an IPO?
A) a mutual fund
B) a corporate pension plan
C) an insurance company
D) an individual investor
E) an institutional buyer
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Of the following, which is LEAST likely to buy stock in an IPO?
A) a mutual fund B) a corporate pension plan C) an insurance company D) an individual investor E) an institutional buyer Answer
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D) Individual investors usually avoid the risk of the IPO. If they like the stock, they will buy it later, on the secondary market.
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