Going public establishes a market value for the firm's stock, and it also ensures that a liquid market will continue to exist for the firm's shares.This is especially true for small firms that are not widely followed by security analysts.

Question

Quizplus · Accepted Answer

Going public does establish a market value for the firm's stock, but it does not guarantee a liquid market, especially for small firms that may not attract significant attention from investors or analysts.

Going Public Establishes a Market Value for the Firm's Stock