Which of the Following Statements Is NOT Correct

question 21

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 ensures 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.

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Definitions:

Teaching Reading

The process and methods used to help someone learn how to read and comprehend text.

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Referring to the requirements or desires that individuals have in their friendships, including support, understanding, and companionship.

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The act of acknowledging or giving attention to something as being of great value or significance.