WHAT IS AN IPO?
Solution
An IPO, or Initial Public Offering, is the process by which a private company can go public by sale of its stocks to the general public. It could be a new, young company or an old company which decides to be listed on an exchange and hence goes public.
Here are the steps involved in an IPO:
- Decision to Go Public: The first step in the IPO process is for the company to decide to
Similar Questions
In respect to a company’s issue of shares, an IPO is an:In respect to a company’s issue of shares, an IPO is an:Question 4Answera.Investment in preference and ordinary shares.b.Instruments providing options to ordinary shareholders.c.Initial public offering of shares.d.Investment prospectus for an issue of options.
28.The process of raising funds through an Initial Public Offering (IPO) involves: A. Selling existing shares to the public B. Distributing dividends to existing shareholders C. Issuing new shares to the public for the first time D. Redeeming outstanding bonds
Explain with example IPO,ICO,STO? for 2 marks
7.In an IPO, the company goes public by: A. Selling shares to existing shareholders B. Distributing shares to employees C. Selling shares to institutional investors D. Selling shares to the general public
What is the main purpose of the IPO process? A. To raise funds for expansion B. To increase corporate debt C. To distribute profits to shareholders D. Venture capital funds
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