All of the Following Are Advantages of an IPO EXCEPT

Multiple Choice

All of the following are advantages of an IPO EXCEPT:

A) the market provides a market value for the firm's common stock.
B) the original owners can reallocate their personal wealth away from the firm into more diversified portfolios.
C) the market provides a transparent measure of firm performance which can attract more investors.
D) IPOs are traditionally priced at a premium to cover the costs of the underwriters.