Related to the Economics in Practice on page 228: In 2010, Tesla Motors decided to become a public company by offering shares of stock to the public on a stock exchange. Like most other firms, Tesla relied on ________ to manage the sales of stock from its Initial public offering.

Question

Quizplus · Accepted Answer

Investment banks typically manage the sales of stock from Initial public offerings (IPOs), as they have the expertise and resources to underwrite and distribute the shares to the public. This is a common practice for firms that go public. Therefore, option B is the correct answer. Option A, inside management, may be involved in the decision-making process of going public, but not in managing the sales of stock. Option C, the board of directors, is responsible for overseeing the firm's strategic direction, but not specifically managing the sales of stock. Option D, the Federal Reserve, does not have any direct involvement in managing the sales of stock from a company's IPO.

Related to the Economics in Practice on Page 228: in 2010