Chapter 14, Problem 3CT

Summary Introduction

Going public:

The term “going public” can be referred to as the initial public offering of a private company, thereby becoming a public traded and owned entity. A firm generally goes public in order to expand and diversify. It can also be referred to as the means to sells their shares that were initially privately held to new investors for the first time.

To determine:

The main advantages and disadvantages of going public.