A liquidity event accomplishes which of the following purposes?
A) Provides a business sufficient funding to operate for up to a year without raising additional funding
B) Provides the founders of a firm a salary
C) Converts some or all of a company's stock to cash
D) Allows the founders of a firm to sell stock to the public
E) Allows a business to liquidate in an ethical and cost-effective manner

Question

Quizplus · Accepted Answer

A liquidity event is when a company converts some or all of its stock to cash. This can be achieved through various means, such as an IPO, acquisition, or merger. It allows investors to realize a return on their investment and provides liquidity for the company's shareholders.

A Liquidity Event Accomplishes Which of the Following Purposes