Which of the Following Statements Is NOT CORRECT

question 18

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) When a corporation's shares are owned by a few individuals,we say that the firm is "closely,or privately,held."
• B) "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
• C) The stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the SEC.
• D) When stock in a closely held corporation is offered to the public for the first time,the transaction is called "going public,or an IPO," and the market for such stock is called the new issue or IPO market.
• E) It is possible for a firm to go public and yet not raise any additional new capital for the firm itself.

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Definitions:

Diaphragm

A dome-shaped, flexible muscle separating the chest cavity from the abdominal cavity in humans, playing a major role in breathing.

Spasm

An involuntary sudden movement or convulsive muscular contraction.

Small Cell Carcinomas

Small cell carcinomas are a type of highly malignant cancer that most commonly arises in the lung, characterized by small cells that can multiply quickly.

Hemoptysis

Hemoptysis is the medical term for coughing up blood or blood-streaked sputum from the lungs or bronchial tubes due to various respiratory conditions.