1、Ch18PublicandPrivateFinancing:InitialOfferings,SeasonedOfferings,andInvestmentBanks1. Goingpublicestablishesamarketvalueforthefirm'sstock,anditalsoensuresthataliquidmarketwillcontinuetoexistforthefirm'sshares.Thisisespeciallytrueforsmallfirmsthatarenotwidelyfollowedbysecurityanalysts. a.