Regarding the issuance of stock,which of the following statements is incorrect?
A) Large corporations cannot finance all their operations through borrowing, so they raise capital by issuing stock.
B) A company can sell its stock directly to stockholders, or it can use the services of the state's Securities and Exchange Commission.
C) The issue price is the amount the corporation receives from issuing its stock.
D) Large corporations need huge quantities of money.

Question

Quizplus · Accepted Answer

The statement that a company can use the services of the state's Securities and Exchange Commission to sell its stock is incorrect. The Securities and Exchange Commission (SEC) is a regulatory agency that oversees the stock market and ensures that companies follow proper disclosure and reporting requirements. However, the SEC does not offer services to companies to help them sell their stock. Companies typically work with investment banks or other financial intermediaries to facilitate the sale of their stock to investors.

Regarding the Issuance of Stock,which of the Following Statements Is