The sentence is FALSE: While IPOs often provide liquidity and can increase wealth, they do not always guarantee an increase in wealth for existing shareholders, as the stock price can fall below the offering price or even its pre-IPO valuation.
The sentence is FALSE: While IPOs often provide liquidity and can increase wealth, they do not always guarantee an increase in wealth for existing shareholders, as the stock price can fall below the offering price or even its pre-IPO valuation.