suppose a company issues 30 per cent of its stock for the first time, it is IPO. now next when it issues the remaining 70 per cent shares,is it IPO
Question
suppose a company issues 30 per cent of its stock for the first time, it is IPO. now next when it issues the remaining 70 per cent shares,is it IPO
Solution
When a company issues 30% of its stock for the first time, it is called an Initial Public Offering (IPO). An IPO is the process through which a private company becomes a publicly traded company by offering its shares to the public for the first time.
Now, if the company decides to issue the remaining 70% of its shares after the initial 30% IPO, it would not be considered another IPO. The initial IPO is the first offering of shares to the public, and any subsequent offerings of shares by the company would be referred to as secondary offerings or follow-on offerings.
In summary, the remaining 70% shares issuance would not be considered an IPO, but rather a secondary offering.
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