OFFICIAL EXPLANATIONProject SC Butler: Sentence Correction (SC2)
THE PROMPTQuote:
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 OPTIONSQuote:
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.