The cost of meeting SEC and possibly additional state reporting requirements regarding disclosure of financial information, the danger of losing control, and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public.

Question

Quizplus · Accepted Answer

The statement highlights genuine risks and concerns of going public, including costs, loss of control, and potential decrease in stock price due to an inactive market. These factors are often considered as potential disadvantages of an IPO.

The Cost of Meeting SEC and Possibly Additional State Reporting