Giovani is selling common stock to raise funds for his company's growth.He is only selling stock to several family members and business acquaintances.What is this sale of stock called?

Question

Quizplus · Accepted Answer

The sale of stock to a select group of individuals, such as family members and business acquaintances, is called a private placement. This is different from an initial public offering (IPO), which involves selling stock to the general public, and debt financing, which involves borrowing money instead of selling ownership in the company. Bootstrapping refers to starting and growing a business without external funding or investment.

Giovani Is Selling Common Stock to Raise Funds for His