GMAT Critical Reasoning (CR) | A new company can offer stocks in an initial public offering (IPO) bef

A new company can offer stocks in an initial public offering (IPO) before the company has proven itself capable of generating long-term profits for its stockholders. Historically, if a compasny has seemed likely to generate profits, the stock price in the IPO has risen; if the company seemed less likely to generate profits, the stock price in the IPO has fallen. Today business analysts announced that the Tenon Corporation has turned a profit in the financial quarter just completed. Therefore, stock
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