Question

A corporation that decides to issue stock for the first-time to the public engages in a(n) _____. The firm will typically hire a(n) _____ to help develop a prospectus and determine an appropriate offer price for the shares.

A. IPO: underwriter

B. buyout-to-buyout deal; private equity firm

C. straight refinancing; portfolio manager

D. leveraged buyout; accountant

Answer 1

When a corporation issue its stock to the general public it is called IPO. For issuing the IPO there are various regulation which the company need to follow and for a company it is very difficult to identify and implement all the regulation properly and hence the company will have to appoint an expert which is known as Underwriter.

So the answer for this question will be A. IPO, UNDERWRITER

Out of Context - It is very funny to say that the before the blanks "an" is used which means that the answer will be VOWELS. and in all the option there is only option A which starts with VOWELS "I". Funny but logical.