When a Privately Owned Company Decides to Distribute Its Shares

question 85

Essay

When a privately owned company decides to distribute its shares to the general public,it goes through a process known as an initial public offering (IPO).List and describe at least three advantages and three disadvantages to having a firm's shares traded in the public equity market.

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Definitions:

Material Fact

A fact that would influence a reasonable person's decision-making process in a particular context, such as in contracts or legal decisions.

In Personam Jurisdiction

The legal authority of a court to determine a case against particular persons or entities, based on their connection to the jurisdiction.

In Rem Jurisdiction

A legal authority based on the power over property within its territory regardless of the property owner's location.

Locale

A place or setting of an event, story, or situational context, often significant to its narrative or functionality.