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Oksana_A [137]
3 years ago
12

Which of the following statements about the IPO process is FALSE?

History
1 answer:
Otrada [13]3 years ago
4 0

Answer:

B. Companies must seek out private investors for the company.

Explanation:

IPO, in finance, is an acronym that stands for Initial Public Offering. When a private company wants to sell their stocks on the stock market, they go through the IPO process, meaning that they offer shares to the public in a new stock issuance. The IPO process allows the company to raise capital from public investors, not private investors. Companies going through the IPO process have to form a Board of Directors,  establish how much money they want to raise, and come up with a ticker symbol. But they don´t have to seek out private investors for the company.

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