Question

Can a private company use IPO as an exit strategy?

Can a private company use IPO as an exit strategy?

Homework Answers

Answer #1

Yes, a private comapany use IPO as an exit strategy ,this is one of the most common exit strategies.The private investor listed their shares on the stock market through IPO so the investor will be able to share his shares with the public. If the market is favourable the private investor will earn maximum return on their investment and when stock got listed in the stock market he will start selling the stock as the stocks will be trading in the stock market.

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