The statement "When a company 'goes public,' only a small amount of investors are allowed to invest in the company" is False.
Here's why:
1. When a company "goes public," it conducts an Initial Public Offering (IPO) where it sells shares to the general public for the first time.
2. Going public allows a large number of investors, including individual and institutional investors, to buy shares of the company.
3. The process of going public increases the company's capital base and provides liquidity to existing shareholders.
4. By going public, a company can raise significant funds for growth and expansion by selling shares to a wide range of investors.
5. It is the essence of going public that it opens up the opportunity for a broad base of investors to participate in owning a part of the company by purchasing its shares.
In conclusion, when a company goes public, it typically aims to attract a large number of investors to purchase its shares, rather than restricting investment to a small amount of investors.
