Having publicly traded stock can be beneficial to owners in that a public market offers
A) greater liquidity.
B) protection against an unwanted harvest.
C) insight into how to improve the performance of the firm.
D) a justification for refusing requests for ESOP options.

Question

Quizplus · Accepted Answer

Publicly traded stock can be easily bought and sold on a public market, providing greater liquidity for owners who may want to sell their shares. This liquidity can also increase the overall value of the company as more investors are willing to invest in a company with a public market for its stock.

Having Publicly Traded Stock Can Be Beneficial to Owners in That