QUESTION

5. Which of the following statements is NOT CORRECT? a. When a corporation’s shares are owned by a few individuals a

Category: Business
Subject: Finance
Due Date: 01/27/2016
Question Asked: 2016-01-27 18:12:49

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5. Which of the following statements is NOT CORRECT?

a. When a corporation’s shares are owned by a few individuals and are not traded on public

markets, we say that the firm is "closely, or privately, held."

b. "Going public" establishes a firm's true intrinsic value, and it also insures that a highly liquid

market will always exist for the firm’s shares.

c. When stock in a closely held corporation is offered to the public for the first time, the

transaction is called "going public," and the market for such stock is called the new issue

market.

d. Publicly owned companies have shares owned by investors who are not associated with

management, and public companies must register with and report to a regulatory agency such

as the SEC.

e. It is possible for a firm to go public and yet not raise any additional new capital at the time.

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5. Which of the following statements is NOT CORRECT? a. When a corporation’s shares are owned by a few individuals a

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... of the following statements is NOT CORRECT? a. When a corporation’s shares are owned by a few individuals and are not traded on public markets, we say that the firm i...

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