Which of the statements below is TRUE?
A) Buying of shares is the selling of ownership in the company.
B) A company is said to go "private" when it opens up its ownership structure to the general public through the sale of common stock.
C) Private companies choose to sell stock to attract permanent financing through equity ownership of the company.
D) Most companies have the resident expertise to complete an initial public offering (IPO), or first public equity issue.

Question

Quizplus · Accepted Answer

Private companies sell stock to raise capital by offering equity ownership, which provides permanent financing without incurring debt.

Which of the Statements Below Is TRUE