Which of the Following Statements Regarding Selling Shares to the Public

question 39

Multiple Choice

Which of the following statements regarding selling shares to the public is most accurate?

• A)The process of selling stock to the public for the first time is called a seasoned equity offering (SEO).
• B)Public companies typically have access to much larger amounts of capital through the public markets.
• C)By going public,companies prevent their private equity investors from diversifying.
• D)An IPO is typically the last time a company needs to raise capital from the public markets.
• E)Going public gives current shareholders less liquidity for their shares.

---

Definitions:

Oil Level

The measure of the amount of oil within a system or component, essential for proper lubrication and function.

Tax-shield Approach

The use of allowable deductions and exemptions to reduce taxable income, effectively lowering the overall tax burden.

OCF

Operating Cash Flow, which represents the cash generated by a company's regular business operations.

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources, including all revenues, gains, expenses, and losses.