The Only Relevant Cash Flows Are Those That Will Differ

question 26

True/False

The only relevant cash flows are those that will differ among alternatives.

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Definitions:

IPO

Initial Public Offering, the process by which a private company becomes publicly traded by offering its shares for the first time to the public.

Seasoned Equity Offering

When a company with publicly traded shares issues additional shares. Also known as a “secondary” or “follow-on” offering.

Primary Market

The primary market is the financial market where new securities are issued and sold for the first time, directly from the issuer.

Secondary Market

A marketplace where investors buy and sell securities or assets that have been previously issued, often through exchanges or over-the-counter markets.