Question

In a publicly held corporation



a.
stockholders rarely trade their stocks.


b.
a large number of stockholders can buy and sell stock.


c.
stocks are not usually traded at stock exchanges.


d.
family members are excluded from holding stock.

Answer 1

I believe the answer is C but I'm not sure. look at this website though, it'll be helpful.

http://www.investopedia.com/ask/answers/162.asp

Answer 2

I meant B, not C.

Answer 3

Your correct. In a privately traded corporation, few people own all the stock, and trade it amongst themselves. In a publicly traded corporation, the majority can buy and sell as they wish.

Answer 4

Take the guy who invented the GoPro camera.

He recently went from being a privately traded company, to a publicly traded one. He is now worth a billion dollars. All he has to do is sell 50,000 shares at 100 dollars a piece, and retain 60% of the company, and he makes millions because everyone in the stock market wants a share in the company.

Answer 5

Thank you all