One result of taking a firm private is:
A)The firm's stock is no longer available for purchase on the open market.
B)Managers lose some control as the number of stockholders increases.
C)The public image of the firm will suffer.
D)The firm will have access to more capital.

Question

Quizplus · Accepted Answer

When a firm goes private, its stock is no longer publicly traded and is no longer available for purchase on the open market. This means that the firm is no longer subject to the same regulatory requirements as public companies, but it also means that the firm's shareholders have reduced liquidity and may have a harder time selling their shares.

One Result of Taking a Firm Private Is