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:

Infection

The process where microorganisms like bacteria, viruses, and parasites that usually don't exist within the body start to invade and proliferate.

Blood Cancer

A group of malignancies affecting the blood, bone marrow, or lymph nodes, such as leukemia, lymphoma, and myeloma.

Waxy Secretion

A substance produced by glands in certain animals or plants that has a protective or lubricating quality and possesses a waxy texture.

Cerumen

A technical term for earwax, a natural substance produced in the ear canal that protects ears from dust, foreign particles, and microorganisms.