Which of the following statements concerning common stock and the investment banking process is false? a. the preemptive right gives each existing common stockholder the right to purchase his or her proportionate share of a new stock issue. b. if a firm sells 1,000,000 new shares of class b stock, the transaction occurs in the primary market. c. listing a large firm's stock is often considered to be beneficial to stockholders because the increases in liquidity and status probably outweigh the additional costs to the firm. d. stockholders have the right to elect the firm's directors, who in turn select the officers who manage the business. if stockholders are dissatisfied with management's performance, an outside group may ask the stockholders to vote for it in an effort to take control of the business. this action is called a tender offer. e. a large issue of new stock could cause the stock price to fall. this loss is called "market pressure, " and it is treated as a flotation cost because it is a cost associated with the new issue.

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.