Which of the following is an advantage of an initial public offering (IPO)?

Question

Quizplus · Accepted Answer

Going public through an IPO creates options to acquire other companies through stock rather than cash. This can be advantageous as it allows companies to conserve cash and use their stock as currency to make strategic acquisitions.

Option A is incorrect as the legal costs of raising money through an IPO are generally higher compared to other ways of raising money.

Option B is incorrect as management is required to invest effort, time, and expense to comply with SEC regulations after going public through an IPO.

Option D is incorrect as a company's management is always interested in maintaining the price of the company's stock but this should not come at the expense of running the company effectively.

Which of the Following Is an Advantage of an Initial