When a Private Firm Makes Its Equity Available to the Public

question 12

Multiple Choice

When a private firm makes its equity available to the public in order to meet its need for equity capital,it undertakes a process known as:

• A)a shelf registration.
• B)an addition to retained earnings.
• C)an initial public offering.
• D)a secondary stock offering.

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Definitions:

Machines

Devices or systems that use mechanical power to perform specific tasks, often reducing human effort.

Marginal Revenue Product

The increased earnings obtained by utilizing an extra unit of a production resource or input.

Perfect Competitor

An ideal market condition where all sellers offer identical products, leading to equal market share and no price control.

Input

Resources used in the process of production, such as labor, materials, and capital.