Firms go public to:

Question

Firms go public to:

Quizplus · Accepted Answer

Firms go public to raise additional capital by selling shares to investors in exchange for ownership in the company. Going public allows the company to access a larger pool of potential investors and raise more capital than through private financing options. Diversifying public debt holders' risk (B) may be a reason for issuing bonds, not necessarily for going public. Avoiding second stage financing (C) may be an option in some cases, but it is not the primary reason for going public. Increasing leverage (D) may be a result of going public, but it is not the primary reason for doing so.

Firms Go Public To