Which of the following statements is FALSE? A.When a firm issues stock using an SEO, it follows
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Question:
Which of the following statements is FALSE?
A.When a firm issues stock using an SEO, it follows many of the same steps as for an IPO. The main difference is that a market price for the stock alreadyexists, so the
pricesetting
process is not necessary.
B.
Usually, profitable growth opportunities occur throughout the life of the firm, and in some cases, it is not feasible to finance these opportunities out of retained earnings.
C.
More often than not, firms return to the equity markets and offer new shares for sale, a type of offering called a seasoned equity offering (SEO).
D.
A firm's need for outside capital usually ends at the IPO.
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