All of the Following Are Advantages of an IPO EXCEPT

question 19

Multiple Choice

All of the following are advantages of an IPO EXCEPT:

• A) the market provides a market value for the firm's common stock.
• B) the original owners can reallocate their personal wealth away from the firm into more diversified portfolios.
• C) the market provides a transparent measure of firm performance which can attract more investors.
• D) IPOs are traditionally priced at a premium to cover the costs of the underwriters.

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Definitions:

Design Tab

A feature in many software applications that provides tools and options for modifying the appearance or layout of a document or presentation.

Background

The part of a visual image or page that lies behind the main objects of interest, setting the scene or context.

Navigation Pane

A user interface component that displays a hierarchical view of the contents of a software application, often used to navigate between different sections or features.

Promote

To elevate the priority or visibility of a particular item, idea, or website, often through marketing or algorithmic adjustments.