Question

3.

Hi-Tek Shoes is a private firm that has decided to issue shares of stock to the general public. This stock issue will be referred to as a(n):

A.

open-end sale

B.

break-out issue

C.

public service offering

D.

initial public offering

E.

initial trial issue

Answer 1

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Answer:

It will be called an Initial public offering (IPO)

Other options are incorrect as open end sale is the discussion of future prospects of business and does not indicate issuing of common shares.

Break-out issue is termed as  a new issue of a security that drops below its first offer price very quickly.

Public service offering is offering to the communities the services of a company and is not related to issue of shares

Initial trial issue is not termed ith anything related to issue of shares

Hence option D