John's medical device company has just surpassed $7 million in annual sales.He needs a large amount of capital to expand his company into Europe and Asia.He plans to raise the necessary capital by selling a large percentage of his shares to the general public.What is this sale of stock called?

Question

Quizplus · Accepted Answer

The sale of a large percentage of shares to the general public is called an Initial Public Offering (IPO). Private placement involves selling shares to a select group of investors, debt financing involves borrowing money, and bootstrapping involves financing the company with personal savings or revenue.

John's Medical Device Company Has Just Surpassed $7 Million in Annual