One of the Benefits of Going Public Is That the Company

question 4

True/False

One of the benefits of going public is that the company can then issue stock options to management and employees.

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Definitions:

Treasury Stock

Shares that were once part of the outstanding shares and were bought back by the company.

Preferred Stock

A class of ownership in a corporation with a priority claim on assets and earnings before common stock.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.

Market Price

The immediate rate at which assets or services are traded in the open market.