A firm that goes public generally explains to potential investors how it intends to use the proceeds from the stock issue.

Question

Quizplus · Accepted Answer

When a company goes public, it typically files a prospectus with the Securities and Exchange Commission (SEC) and provides information to potential investors about how it intends to use the proceeds from the stock issue. This is done in order to provide investors with transparency and to help them make informed decisions about whether or not to invest in the company.

A Firm That Goes Public Generally Explains to Potential Investors