Which of the following statements regarding selling shares to the public is most accurate?

Question

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Public companies have the ability to sell shares to a much larger pool of investors, giving them access to larger amounts of capital. A is incorrect as an SEO is actually an offer of additional shares made by a company that is already publicly traded. C is incorrect as going public allows private equity investors to sell their shares and diversify their investments. D is incorrect as companies may need to raise additional capital in the future, and may do so through additional stock issuances. E is incorrect as going public typically increases liquidity for shareholders as their shares can be bought and sold on public markets.

Which of the Following Statements Regarding Selling Shares to the Public