Why do company manager-owners smile when they ring the stock exchange bell at their IPO?

A. Manager-owner are freed of burden of managing their company.

B. An IPO reveals the value of the manager-owners' value.

C. Managers owners receive their first stake in the company at an IPO.

D. An IPO's price goes up on the first day, generating guaranteed returns for investors.

Respuesta :

The reason why company manager-owners smile when they ring the stock exchange bell at their IPO is that an IPO reveals the value of the manager-owners' value.

  • An IPO gives room for an organization to raise capital through the help of public investors. IPO means Initial Public offering. The movement from a private to a public company is very essential period for private investors to fully have gains from their investment as it includes a share premium for their current private investors. It permits, public investors to be part of the offering.

Conclusively, an IPO shows the what the worth of the manager-owners' value is and allows public investors to be part of the offering

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