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:

Capital Investment

Funds invested in a business with the intent of enhancing its capacity or operations, often involving expenditures on equipment or infrastructure.

Capital Flight

The large-scale exodus of financial assets and capital from a country due to economic or political instability, leading to a decrease in investment and economic growth.

IACs

An abbreviation that could refer to "Internet Access Controllers," though without a specific context, its accurate meaning might vary.