When a security is resold and bought by another investor, where does the gain or loss go?
A) The investor who bought the security
B) The bank that financed the IPO
C) Stakeholders with vested interests in the company
D) The investor who sold the security
E) The company
Answer: D
Explanation: D) Once a security purchased through an IPO is resold, the gain or loss goes to the owner of the security, not the company.
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