The advantages of being publically traded include all of the following except:
A) the corporation may tap the security markets for a greater amount of funds by selling securities directly to the public through a public placement.
B) going public allows the firm to play the merger game,using marketable securities for the purchase of other firms.
C) corporate information on profit margins and product lines must be divulged.
D) shareholders of a heretofore private corporation may also sell part of their holdings if the corporation decides to go public.

Question

Quizplus · Accepted Answer

The disclosure of corporate information on profit margins and product lines may be seen as a disadvantage by some companies who value their privacy and competitive advantages. The other options all provide clear advantages for a publicly traded company.

The Advantages of Being Publically Traded Include All of the Following