Which of the Following Statements Is NOT CORRECT

question 31

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) When a corporation's shares are owned by a few individuals and are not traded on public markets, we say that the firm is "closely, or
• Privately, held."
• B) "Going public" establishes a firm's true intrinsic value, and it also insures that a highly liquid market will always exist for the
• Firm's shares.
• C) When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and
• The market for such stock is called the new issue market.
• D) Publicly owned companies have shares owned by investors who are not associated with management, and public companies must register with
• And report to a regulatory agency such as the SEC.
• E) It is possible for a firm to go public and yet not raise any
• Additional new capital at the time.

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Definitions:

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The actions or reactions of an individual or group in response to external or internal stimuli.

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A representative subset of the larger population.

High School Seniors

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