When a Corporation Goes from Being a Private to a Public

question 123

Short Answer

When a corporation goes from being a private to a public firm it will sell stock in what is called a(n) ________.

---

Definitions:

Economic Profit

The surplus remaining after total costs are subtracted from total revenue, considering both explicit and implicit costs.

Zero Profit

A situation where a firm's total revenues are exactly equal to its total costs, leading to no net gain or loss.

Breaking Even

The situation in which a firm is earning exactly a normal rate of return.

Economic Profit

This refers to the surplus remaining after subtracting both visible and hidden costs from total revenues, highlighting a firm's genuine financial gain.