Question

47. A(An) ________ refers to the first public offering of a corporation's stock.    a. primary...

47. A(An) ________ refers to the first public offering of a corporation's stock.

   a. primary market offer (PMO)
b. first securities proposal (FSP)

c. initial public offering (IPO)

   d. primary public sale (PPS)

e. securities management offering (SMO)

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Answer #1

Sol:

A(An) initial public offering (IPO) refers to the first public offering of a corporation's stock.

Ans = c. initial public offering (IPO)

Initial public offering (IPO) refers to the first time a company publicly sells shares of its stock on the open market. It is also known as "going public." It is a process by which a privately held company becomes a publicly traded company by offering its shares to the public for the first time. A private company, that has a handful of shareholders, shares the ownership by going public by trading its shares. Through the IPO, the company gets its name listed on the stock exchange. Offering an IPO is a money-making exercise. Every company needs money, it may be to expand, to improve their business, to better the infrastructure, to repay loans, etc.

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