While DPOs Permit Entrepreneurs to Avoid the Paperwork Involved in Traditional

question 52

True/False

While DPOs permit entrepreneurs to avoid the paperwork involved in traditional IPOs,these direct offerings do not save them any money because of the time and extra expense involved in doing all the work themselves.

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Definitions:

Other Comprehensive Income

A component of shareholders' equity that reflects the changes in net assets of a company not recognized in the profit or loss for a period.

Cumulative Preferred Stock

A type of preferred stock where dividends not paid in full accumulate and must be paid out before any dividends can be distributed to common stockholders.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.