(W7C18.24) (T/F) Privatization or going private is when a publicly traded company has its stock repurchased by a select group of owners.
Select one:
True
False
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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(W7C18.24) (T/F) Privatization or going private is when a publicly traded company has its stock repurchased...
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When a company buys back its own stock, equity that owners have in the company is reduced -- stock outstanding is reduced. True False