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Multiple Choice QuestionAn IPO refers toMultiple choice question.the first public offering of a company's stock.the level of a company's retained earnings.the cash return on a corporate bond.the company's rank on the market index.

Question

Multiple Choice QuestionAn IPO refers toMultiple choice question.the first public offering of a company's stock.the level of a company's retained earnings.the cash return on a corporate bond.the company's rank on the market index.

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Solution

The correct answer is "the first public offering of a company's stock."

An IPO, or Initial Public Offering, 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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WHAT IS AN IPO?

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