Which of the Statements Below Is FALSE

question 46

Multiple Choice

Which of the statements below is FALSE?

• A)Selling of shares is the selling of ownership in the company.
• B)A company is said to go "public" when it opens up its ownership structure to the general public through the sale of common stock.
• C)Companies choose to sell stock to attract permanent financing through equity ownership of the company.
• D)Most companies have the resident expertise to complete an initial public offering (IPO)or first public equity issue.

---

Definitions:

Premium Bond

A bond sold for more than its face value, typically occurring when its interest rate is higher than the current market rate.

Market Price

The ongoing rate at which a marketplace values the buying or selling of assets or services.

Face Value

The nominal value printed on a financial instrument, such as a bond or stock certificate.

Zero-Coupon Bond

A bond that does not pay interest during its life but is sold at a discount from its redemption value.