Question
Which of the following statements is false ? A. a. When a corporation's shares are owned by a few individuals who are associated with or
Which of the following statements is false?
A. a. When a corporation's shares are owned by a few individuals who are associated with or are the firm's management, we say that the firm is "closely held."
B. b. A publicly owned corporation is simply a company whose shares are held by the investing public, which may include other corporations and institutions as well as individuals.
C. c. Going public establishes a true market value for the firm and ensures that a liquid market will always exist for the firm's shares.
D. d. 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 initial public offering market.
E. e. It is possible for a firm to go public, and yet not raise any additional new capital.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started