If a firm sells common stock to the public for the very first time, it is known as _____.
A) an underwriting
B) an initial public offering
C) a financial intermediation
D) an origination

Question

Quizplus · Accepted Answer

Selling common stock to the public for the very first time is known as an initial public offering (IPO). An underwriting is the process by which an investment bank or a group of investment banks purchase an entire issue of securities from a company and then sell it to investors. Financial intermediation is the process of channeling funds between surplus and deficit agents. Origination refers to the process of creating new securities.

If a Firm Sells Common Stock to the Public for the Very