Going public establishes a true market value for the firm and ensures that a liquid market will always exist for the firm's shares.

Question

Quizplus · Accepted Answer

Going public does establish a market value for the firm based on supply and demand, but it does not ensure that a liquid market will always exist for the firm's shares. Market liquidity can vary greatly over time due to various factors including investor interest, market conditions, and the overall economic environment.

Going Public Establishes a True Market Value for the Firm