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.
Question
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.
Solution
The correct answer is c. Initial public offering of shares.
An Initial Public Offering (IPO) is the process by which a private company can go public by sale of its stocks to 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.
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