The more conservative a firm's management is the higher its total debt to total capital ratio is to be. A decline in a firm's inventory turnover ratio suggests that it is improving both its inventory management and its liquidity position, i.e., that it is becoming more liquid. Which of the following statements is NOT CORRECT? When a corporation's shares are owned by a few individuals, we say that the firm is "closely, or privately, held". The Stock of publicity owned companies must generally be registered with and reported to a regulatory agency such as the SEC. "Going public" establishes a firm's true value and ensures that a liquid market will always exist for the firm's shares. It is possible for a firm to go public and yet not raise any additional new capital for the firm itself. 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 markets