When Stock in a Closely Held Corporation Is Offered to the Public

question 1

True/False

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 initial public offering,or IPO,market.

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Definitions:

Income Effect

The variation in a person's or an economy's earnings and its effect on the amount of a product or service that is requested.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods.

Price

The anticipated sum of money, necessitated, or allocated in payment for something.

Delphiniums

Perennial plants known for their tall spikes of colorful flowers, commonly used in gardens and floral arrangements.