1. Which one of the following is a false statement?
(A) Publicly traded companies sell securities to the general public.
(B) Initial Public Offering (IPO) means first sales of stock by a formerly private company.
(C) Privately held firms have more obligations to release financial statements to the general public.
(D) Trading of existing stock take place in the secondary market.
2. You bought a stock for $100. Today you received $5 in dividends and then sold the stock for $110. In this transaction, the total return is ____________________________ .
(A) 15%
(B) 16%
(C) 18%
(D) 19%
(E) 20%