The Most Important Motive for IPO Issue Is to Create

question 4

True/False

The most important motive for IPO issue is to create public shares for use in future acquisitions.

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Definitions:

Investing Activities

Financial actions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Net Change in Cash

The total increase or decrease in a company's cash and cash equivalents over a specified period, reflecting cash inflows and outflows.

Conversion of Bonds

The process of exchanging bond securities for a predetermined number of shares of the issuing company's stock.

Financing Section

Part of a cash flow statement that shows the net flows of cash used to fund the company's financial activities, including debt, equity, and dividends.