An initial public offering (IPO) or stock market launch is a type of

Question

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An initial public offering (IPO) or stock market launch is a type of public offering  in which shares of a company are sold to institutional investors that, in turn, are sold to the general public  on a securities exchange for the first time.

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public

B) where shares of a company are sold to institutional investors who, in turn, sell these to the general public

C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public

E) whereby shares of a company are sold to institutional investors that are sold to the general public in turn

generis · Accepted Answer

OFFICIAL EXPLANATION

Project SC Butler: Sentence Correction (SC2)

THE PROMPT

Quote:

An initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors that, in turn, are sold to the general public on a securities exchange for the first time.

THE OPTIONS

Quote:

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public

• the financial investors, i.e. people, are most certainly not sold to the general public or otherwise
Nonsense.
Eliminate A

Quote:

B) where shares of a company are sold to institutional investors who, in turn, sell these to the general public

• GMAC is strict about the word where, which may refer only to actual physical location, a society, or a community

→ • Community, society: Where can refer to some words that we do not typically associate with place.
In one official question, where refers to society.
SPOILER ALERTS: That official question is HERE.
In another official question, where refers to community.
That official question is HERE.
In both cases, the groups are defined as all the people who live in a certain area.
→ On the other hand, on the GMAT, I would be surprised to see where refer to a process such as an IPO.

• these should be followed by a noun. These is not a standalone pronoun.
→ these is the plural of this; both are determiners, words that "point" to nouns, e.g. this house on the corner, these cookies on the stove
Eliminate B

Quote:

C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public

→ and should be who or that

→ Logic is bad. This version suggests that a company's shares themselves, not the institutional investors, sell to the general public
That meaning is silly. Shares cannot sell themselves.
ELIMINATE C

Quote:

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public

• I see no errors
• in which is correctly used to refer to a public offering (which is not a place)
• who correctly refers to investors
• the end of the sentence (remember the non-underlined portion!) makes sense with this option
. . . in which a company’s shares are sold to institutional investors who, in turn, sell them to the general public on a securities exchange for the first time
KEEP D

Quote:

E) whereby shares of a company are sold to institutional investors that are sold to the general public in turn

ELIMINATE E

• that are sold should be who sell
• misplaced modifier: institutional investors that are sold to the general public nonsensically suggests that the investors, not the company's shares, are sold
• in turn read back into the prompt sounds strange.
ELIMINATE E

The best answer is D

COMMENTS

I am glad to see such a mix of veterans and new people.

As always, for those would like to post who are members or aspirants, you have a standing invitation to post.

These answers ranger from very good to excellent. Nice work.

As always, for those would like to post who are members or aspirants, you have a standing invitation to post. These answers ranger from very good to excellent. Nice work.

tyildirim92 · Answer

An initial public offering (IPO) or stock market launch is a type of public offering  in which shares of a company are sold to institutional investors that, in turn, are sold to the general public  on a securities exchange for the first time.

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public // investors are not sold to the general public

B) where shares of a company are sold to institutional investors who, in turn, sell these to the general public // "where" is not appropriate. offering is not a place. "these" is a dangling modifier.

C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public // company's shares do not sell themselves.

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public // correct

E) whereby shares of a company are sold to institutional investors that are sold to the general public in turn // investors are not sold to the general public

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yashikaaggarwal · Answer

IPO is not a physical place where dealings are done, the author intends to tell the meaning/definition of IPO in which dealings occurs.
Therefore denoting Where for IPO is wrong. 
Eliminate B and E.

That pronoun in one is used to describe IPO, whereas author meant to state institutional investors further sell the IPO. ELIMINATE A.

Using And In C is making the sentence ambiguous, who is selling IPO with institutional investors? None is mentioned nor the author intends to state one. Incorrect.

D is correcting all mistakes, "who" pronoun is used for Institutional Investors, who sell IPO further to general public. Meaning is clear. 
D is better choice.

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Nipungupta9081 · Answer

IMO D

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public - Investors are not sold to General Public. - WRONG MEANING. ( x )

B) where shares of a company are sold to institutional investors who, in turn, sell these to the general public - these is not right. ( X )

C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public - Them? ( X )

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public - Correct with meaning. ( ✔ )
 
E) whereby shares of a company are sold to institutional investors that are sold to the general public in turn - ( X )

HouseStark · Answer

An initial public offering (IPO) or stock market launch is a type of public offering  in which shares of a company are sold to institutional investors that, in turn, are sold to the general public  on a securities exchange for the first time.

A) in which shares of a company are sold to institutional investors  that , in turn, are sold to the general public  ("who" instead of "that" is a correct use to represent a living being "institutional investors")

B)  where  shares of a company are sold to institutional investors who, in turn, sell these to the general public  ( "in which" gives the required meaning)

C) in which a company’s shares are sold to institutional investors and, in turn, sell  them  to the general public  (use of "them" is not right as the pronoun "them" represent people but here it should represent company’s shares)

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public  (correct)

E)  whereby  shares of a company are sold to institutional investors  that  are sold to the general public in turn  (total wording of a sentence is incorrect)

VERBAL1 · Answer

An initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors that, in turn, are sold to the general public on a securities exchange for the first time.

A quick vertical scan and we know the three available options :
1) in which 
2) where (used for places only so out)
3) whereby = because of which

So we can eliminate B and E

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public
(that used as a pronoun creates confusion. It seems as if the institutional investors are sold to the general public whereas it's the IPO that's been sold to the general public. )

C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public 
('and, in turn, sell them to the general public' misses a pronoun)

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public
(Makes sense, retains meaning and sorts the pronoun error as in the original statement )

OA : D

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chaitralirr · Answer

An initial public offering (IPO) or stock market launch is a type of public offering  in which shares of a company are sold to institutional investors that, in turn, are sold to the general public  on a securities exchange for the first time.

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public

B) where shares of a company are sold to institutional investors who, in turn, sell these to the general public

C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public

E) whereby shares of a company are sold to institutional investors that are sold to the general public in turn

The use of pronoun where is incorrect in option B and E hence eliminated. In option A use of sold is incorrect it implies that the investors are sold. In option C the missing pronoun changes the meaning.

IMO D who clearly represents investors and they sell to public

Ranasaymon · Answer

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public

=> Meaning error: Institutional investors that are sold to the general public(not correct). Actually, Institutional investors sell shares to the general public

B) where shares of a company are sold to institutional investors who, in turn, sell these to the general public

=> In GMAT, 'where' is used to modify physical location. In this sentence, where incorrectly modifies an abstract thing 'a type of public offering'
 
C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public
 
=> Meaning error: a company’s shares...sell them to the general public.( Incorrect). Actually, Institutional investors sell shares to the general public

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public

E) whereby shares of a company are sold to institutional investors that are sold to the general public in turn 
 
=> Meaning error: Institutional investors that are sold to the general public(not correct). 
=> The use of whereby is incorrect here

Varunsawhney8 · Answer

My best guess is D
Eliminating B for use of Where,
Eliminating A for ambiguity
In C who is them referring to
In E that are sold to implies as if investors are selling themselves

An initial public offering (IPO) or stock market launch is a type of public offering  in which shares of a company are sold to institutional investors that, in turn, are sold to the general public  on a securities exchange for the first time.

A) in which shares of a company are sold to institutional investors  that , in turn, are sold to the general public

B)  where  shares of a company are sold to institutional investors who, in turn, sell these to the general public

C) in which a company’s shares are sold to institutional investors and, in turn, sell  them  to the general public

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public

E) whereby shares of a company are sold to institutional  investors that are sold to the general public in turn

sood1596 · Answer

Split

1) in which vs where
Where is used for places whereas an IPO or a stock launch is an offering so it’s a thing or something of that kind

Eliminate B and E

A - correct use of in which. 
That is referring to what? 
Incorrect

C - company shares are sold to investors and sell them...
Incorrect parallelism and them? 
Incorrect

D - who.. here refers to the investors

Answer - D

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DeepakKumar24 · Answer

First, let's get the clear eliminations out of the way. 'Where' is used to modify a place and IPO is not a place. B is out.
In options A and E 'that' is used as a noun modifier, and it is modifying 'investors'. Now, 'investors' aren't sold to the general public, rather the stocks are sold to the general public. Thus, we can safely (and confidently) eliminate A and E.

In option C, 'and (in turn) sell' is not parallel to anything ('and' is a parallelism marker, thus I looked for verbs that can be parallel to sell, there were none), hence eliminate C.

In option D, No grammatical mistakes as such but I felt that the option could have been better had it included 'them' or 'these' after 'sell'. Nonetheless, it is a far superior choice compared to A, B, C, and E, all of which have clear issues with the sentence structure or grammar.

D is our winner!

HoneyLemon · Answer

imo  D

An initial public offering (IPO) or stock market launch is a type of public offering  in which shares of a company are sold to institutional investors that, in turn, are sold to the general public  on a securities exchange for the first time.

A) in which shares of a company are sold to institutional investors  that , in turn, are sold to the general public
 -- Illogical meaning .. that refers to investors .. and investors are sold is illogical meaning . 
 
B)  where  shares of a company are sold to institutional investors who, in turn, sell these to the general public

--1..incorrect use of where .. Where is used only for place .

C) in which a company’s shares are sold to institutional investors and, in turn,  sell  them to the general public 
 -- Subject Verb error .. the verb sell has no subject . 
 
D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public
  Correct

E)  whereby  shares of a company are sold to institutional investors  that  are sold to the general public in turn 
 -- Illogical meaning .. that refers to investors .. and investors are sold is illogical meaning .

warrior1991 · Answer

institutional investors  ARE NOT SOLD  to general public. Incorrect meaning.

'where' is used to denote a place,area i.e a location. Hence incorrect.

Change in meaning.  
 Actual meaning :-Institutional investors sell to general public .  
 Incorrect option.

Correct. "in which" correctly refers to a type of IPO.

whereby issue same as in B

IMO D

Sushil117 · Answer

An initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors that, in turn, are sold to the general public on a securities exchange for the first time.

A) in which shares of a company are sold to institutional investors that, in turn, are sold to the general public
 "sold to investors that are sold??" shares are sold not investors, incorrect

B) where shares of a company are sold to institutional investors who, in turn, sell these to the general public
 what is the pronoun "these" referring back to?closest noun is investors. ambiguous,wrong 
 
C) in which a company’s shares are sold to institutional investors and, in turn, sell them to the general public
 "them" wrong same as B
 
D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public
 Correct

E) whereby shares of a company are sold to institutional investors that are sold to the general public in turn
 same mistake as A

kush09 · Answer

A) in which shares of a company are sold to institutional investors  that , in turn, are sold to the general public
-- incorrect usage of that, it changes meaning to "investor that are sold"

B)  where  shares of a company are sold to institutional investors who, in turn, sell these to the general public
-- where is used to refers place/location, incorrect to use it to define IPO

C) in which a company’s shares are sold to institutional investors  and , in turn, sell them to the general public
-- meaning is changed. usage of conjunction and is conveying as if IPO is is which "shares are sold to institutional investors " and IPO "sell them to the general public".

D)  in which  shares of a company are sold to institutional investors  who , in turn, sell to the general public
-- Correct: Conveys the intended meaning, defines IPO and investors sell shares to general public.

E)  whereby  shares of a company are sold to institutional investors that are sold to the general public in turn 
-- Same as B.

anthien128 · Answer

In my opinion, D is the correct answer.

1. "public offering" is not a specific location so we should use "in which" instead of "where"
--> Eliminate B and E

2. A is not wrong in meaning because we may understand that investors are the one who be sold
--> Eliminate A

3. C has parallelism error: "are sold to" is not parallel with "sell"
--> Eliminate C

D clearly clarify that investors are the ones who sell the shares to the general public. Therefore D is the correct answer.

SameerGupta2001 · Answer

Does the Relative pronoun refer to just previous noun despite using comma's before pronoun??

agar123 · Answer

An initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors that, in turn, are sold to the general public on a securities exchange for the first time.

A) in which shares of a company are sold to institutional  investors that , in turn,  are sold to the general public   ---> It suggests as if investors are sold to public

B)  where  shares of a company are sold to institutional investors who, in turn, sell these to the general public ----> It corrected the error in option A, as it says individual investors,in tur, sell these to general public. but the use of where is incorrect.

C) in which a company’s shares are sold to institutional investors  and, in turn, sell them  to the general public ---> who sell the shares is not clear.

D) in which shares of a company are sold to institutional investors who, in turn, sell to the general public ----> Correct

E) whereby shares of a company are sold to  institutional investors that are sold to the general public in turn  -----> Repeat the error of choice A

generis · Answer

SameerGupta2001  , I do not understand your question. About which option are you asking?

An initial public offering (IPO) or stock market launch is a type of

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GMAT Sentence Correction (SC - EA only) Questions

An initial public offering (IPO) or stock market launch is a type of

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

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