Which of the following statements is CORRECT? A The stock of publicly owned companies does not need to be registered with and reported to a regulatory agency such as the SEC. B When a corporation's shares are owned by a few individuals, we say that the firm is publicly traded. C "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. D When stock in a closely held
Which of the following statements is CORRECT? A The stock of publicly owned companies does not need to be registered with and reported to a regulatory agency such as the SEC. B When a corporation's shares are owned by a few individuals, we say that the firm is publicly traded. C "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. D When stock in a closely held
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 4BCRQ
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Which of the following statements is CORRECT?
A The stock of publicly owned companies does not need to be registered with and reported to a regulatory agency such as the SEC.
B When a corporation's shares are owned by a few individuals, we say that the firm is publicly traded.
C "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
D When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an IPO," and the market for such stock is called the new issue or IPO market.
E If a firm goes public, it will always raise additional new capital for the firm itself.
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