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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Question
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
15
Seconds
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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