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Week 9_Final Exam | Download for quality grades | 100% correctly solved exam |

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Ques 1 / 1 pts tion 1 Which of the following statements is NOT CORRECT? "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's sh... ares. Publicly owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC. 4/19/2020 Week 9_Final Exam: FINC 5880 MP S2 2018 Advanced Corporate Finance 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. When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held." It is possible for a firm to go public and yet not raise any additional new capital. Ques 1 / 1 pts tion 2 Which of the following statements about listing on a stock exchange is most CORRECT? Listing provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business. Listing reduces the reporting requirements for firms, because listed firms file reports with the exchange rather than with the SEC. Listing is a decision of more significance to a firm than going public. The OTC is the second largest market for listed stock, and it is exceeded only by the NYSE. Any firm can be listed on the NYSE as long as it pays the listing fee. 4/19/2020 Week 9_Final Exam: FINC 5880 MP S2 2018 Advanced Corporate Finance Ques 1 / 1 pts tion 3 Which of the following is generally NOT true and an advantage of going public? [Show More]

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