Many companies that go public with an ipo don’t actually need additional cash to continue growing their operations.
Why might such a firm decide to go public?
a. an ipo increases liquidity and allows founders to harvest their wealth, permits founders to diversify their wealth, establishes a value for the firm.
b. an ipo decreases liquidity.
c. an ipo does not allow founders to harvest their wealth, permits founders to diversify their wealth, establishes a value for the firm. 11 bus263 spring 2024
d. an ipo increases visibility, but decreases credibility, and often does not open to potential markets.
e. an ipo does not establish the value of the firm.