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(W7C18.24) (T/F) Privatization or going private is when a publicly traded company has its stock repurchased...

(W7C18.24) (T/F) Privatization or going private is when a publicly traded company has its stock repurchased by a select group of owners.

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True

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Answer #1

Answer - True

Reason - privatisation is when a company decides to buy back all the shares or majority of the shares from public and make it a private company. This usually happens when the public shareholders find no value in the company or when the company is financially distressed. Privatised companies are not traded in any stock exchange and does not receive any benefits of public trading.

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