Use the following statements to answer this question:
I.One of the most frequently cited reasons of why a firm goes public is because investors want to cash out.
II.Obtaining cheaper sources of financing over the long term is a potential reason for an IPO.

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Quizplus · Accepted Answer

Both statements are correct. Going public allows initial investors to cash out their investments, and it also provides companies with access to capital markets for cheaper long-term financing compared to other forms of raising capital.

Use the Following Statements to Answer This Question