Which of the Following Statements Is False

question 97

Multiple Choice

Which of the following statements is false?

• A) When a corporation's shares are owned by a few individuals who are associated with or are the firm's management,we say that the firm is "closely held."
• B) A publicly owned corporation is simply a company whose shares are held by the investing public,which may include other corporations and institutions as well as individuals.
• C) Going public establishes a true market value for the firm and ensures that a liquid market will always exist for the firm's shares.
• D) 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.

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Definitions:

Radiopaque Substance

A substance that does not allow X-rays to pass through and appears white or light on an X-ray film, used in medical imaging to highlight structures.

Radioactive Isotope

An isotope that exhibits radioactive decay, emitting radiation in the process.

Fluorescence

The emission of light by a substance that has absorbed light or other electromagnetic radiation, usually seen as a different color.

Magnetic Field

An invisible field around magnetic materials where magnetic forces are exerted.