What are disadvantages for a company to go public by issuing equity in an initial public offering (IPO)?   Question 16 options:   a)  It reduces information asymmetry for competitors   b)  Class action lawsuits can occur following large stock price drops   c)  It can attract analyst following resulting in myopic decisions   d)  All of the above are disadvantages of an IPO   e)  None of the above are disadvantages of an IPO

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What are disadvantages for a company to go public by issuing equity in an initial public offering (IPO)?

 

Question 16 options:

 

a) 

It reduces information asymmetry for competitors

 

b) 

Class action lawsuits can occur following large stock price drops

 

c) 

It can attract analyst following resulting in myopic decisions

 

d) 

All of the above are disadvantages of an IPO

 

e) 

None of the above are disadvantages of an IPO

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