Which of the following statements is NOT CORRECT? a. When a corporation's shares are owned by a...

70.2K

Verified Solution

Question

Finance

Which of the following statements is NOT CORRECT?
a.
When a corporation's shares are owned by a few individuals, wesay that the firm is "closely, or privately, held."
b.
When stock in a closely held corporation is offered to thepublic for the first time, the transaction is called "going public,or an IPO," and the market for such stock is called the new issueor IPO market.
c.
It is possible for a firm to go public and yet not raise anyadditional new capital for the firm itself.
d.
The stock of publicly owned companies must generally beregistered with and reported to a regulatory agency such as theSEC.
e.
"Going public" establishes a firm's true intrinsic value andensures that a liquid market will always exist for the firm'sshares.

Answer & Explanation Solved by verified expert

3.5 Ratings (617 Votes)

Answer is e e is Not Correct a When a corporations shares are owned by a few individuals we say that the firm is closely or privately held Correct b When stock in a closely held corporation is See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Which of the following statements is NOT CORRECT?a.When a corporation's shares are owned by a few individuals, wesay that the firm is "closely, or privately, held."b.When stock in a closely held corporation is offered to thepublic for the first time, the transaction is called "going public,or an IPO," and the market for such stock is called the new issueor IPO market.c.It is possible for a firm to go public and yet not raise anyadditional new capital for the firm itself.d.The stock of publicly owned companies must generally beregistered with and reported to a regulatory agency such as theSEC.e."Going public" establishes a firm's true intrinsic value andensures that a liquid market will always exist for the firm'sshares.

	a.	When a corporation's shares are owned by a few individuals, wesay that the firm is "closely, or privately, held."
	b.	When stock in a closely held corporation is offered to thepublic for the first time, the transaction is called "going public,or an IPO," and the market for such stock is called the new issueor IPO market.
	c.	It is possible for a firm to go public and yet not raise anyadditional new capital for the firm itself.
	d.	The stock of publicly owned companies must generally beregistered with and reported to a regulatory agency such as theSEC.
	e.	"Going public" establishes a firm's true intrinsic value andensures that a liquid market will always exist for the firm'sshares.