Question

This is for intro to business, I need help with is true or false question

True/False-write "T" or "F" to the left of each numbered statement. 1. An initial public offering (IPO) represents the fir public offering (IPO) represents the first time a corporation's stock is offered and sold to persons outside of the company. 2. A stock exchange provides a marketplace where the public can directly buy and sell securities without the help of intermediaries. 3. Dividends represent a portion of a firm's profits that are distributed to bondholders first, then stockholders. 4.U.S. Government bonds are considered safe investments. Therefore, such government bonds usually have a lower interest rate than corporate bonds. 5. Young investors place more importance on low risk investments, while elderly investors prefer significant growth in the value of their investments.

Answer 1

1) True (IPO represents the first time offering of stocks of a company to public)

2) False (To trade on stock exchange you need to have a trading account, which is opened by a broker)

3)False (Bond holders are like creditors of the company, they receive interest. Dividends are provided from the income left after deduction of bond payments)

4) True ( U.S Government bonds pay lower interest rate then corporate bonds because they are safe)

5) False (Young investors are risk takers, on the other hand elderly people tend to averse risk)