Which of the following is an incentive for firms to conduct an IPO? Underwriter and advisor fees are typically substantial. Venture capitalists will be more able to sell their shares. Reporting requirements are more stringent for public companies. The company may become subject to a hostile takeover.
Which of the following is an incentive for firms to conduct an IPO? Underwriter and advisor fees are typically substantial. Venture capitalists will be more able to sell their shares. Reporting requirements are more stringent for public companies. The company may become subject to a hostile takeover.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter10: Corporate Governance
Section: Chapter Questions
Problem 3MC
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Question
Which of the following is an incentive for firms to conduct an IPO?
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Underwriter and advisor fees are typically substantial.
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Venture capitalists will be more able to sell their shares.
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Reporting requirements are more stringent for public companies.
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The company may become subject to a hostile takeover.
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