​ Which of the Following Statements Is NOT CORRECT

question 24

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.