1. Private companies can go public by choosing to sell stock to attract permanent financing through equity ownership of the company. True False

2. Even though a company sets a limit on the number of shares it will sell, before selling any of them, the company must receive authorization to market the shares from the Securities and Exchange Commission (SEC). True False

3. Common stock is a vehicle for selling ownership and another way to raise money for operations, expansion, or other business needs. True False

4. Like a bond, common stock provides no specific promise of when and how much you will receive. True False