What are the main advantages and disadvantages of going public?

The advantages of going public include which of the following?(Select all of the choices below that apply.)

A.

One advantage of going public is increased liquidity. It is easier to buy and sell the company's shares.

B.

A very significant advantage of going public is that by doing so a firm can satisfy all of the requirements of being a public company such as SEC filings and listing requirements of the securities exchanges.

C.

Increased access to capital markets is a primary advantage of going public.

D.

Decreased exposure to sources of capital is another advantage of going public.

The disadvantages of going public include which of the following?(Select all of the choices below that apply.)

A.

One disadvantage of going public is decreased liquidity. The original owners of the company find it more difficult to sell their shares because of insider-trading laws.

B.

One major disadvantage of going public is reduced access to capital markets.

C.

One of the major disadvantages of an IPO is that once a company becomes a public company, it must satisfy all of the requirements of being a public company such as SEC filings and listing requirements of the securities exchanges.

D.

When investors diversify their holdings, the equity holders of the corporation become more widely dispersed. This lack of ownership concentration undermines investors' ability to monitor the company's management, and investors may discount the price they are willing to pay to reflect the loss of control