Which of these are two major benefits a firm derives from going public?
I.Investment bank customers remain content
II.Increased ability of the firm to raise capital
III.Reselling IPO shares at higher prices on the first day of trading
IV.Shareholders are better able to diversify their holdings

Question

Quizplus · Accepted Answer

Going public allows a firm to increase their ability to raise capital from public investors, making option II true. Shareholders benefit from diversification of their holdings, making option IV true. Option I is not a benefit of going public, and option III refers to a short-term benefit that may not always occur.

Which of These Are Two Major Benefits a Firm Derives