After many years as a privately held corporation, Connecticut Industries decided to offer stock to the general public. Connecticut may discover that stockholders:

Question

Quizplus · Accepted Answer

By offering stock to the public, Connecticut Industries will have new shareholders who may be able to exercise significant influence over company management and policies by voting on corporate matters such as electing board members or approving major business decisions. Shareholders may also potentially exert pressure for dividend payments, but this is not a mandatory requirement as stated in choice B. Debt levels may also be affected by issuing stock, but this is not the primary concern in this scenario.

After Many Years as a Privately Held Corporation, Connecticut Industries