Your Privately Held Firm Needs Additional Funding for a Planned

question 191

True/False

Your privately held firm needs additional funding for a planned expansion. Having never issued stock to the public, your firm is well advised to seek the assistance of an investment banker prior to an initial public offering of stock.

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Definitions:

Dividend Policy

A company's stance on distributing profits back to shareholders in the form of dividends versus reinvesting them in the business.

Cash Flow

The total amount of money being transferred into and out of a business, considered essential for its health and operations.

Date Of Record

The specific date set by a company on which the shareholders must be on record to be eligible to receive dividends or other distributions.