The first sale to the general public of stock in a corporation is referred to as
A)An original public sale.
B)An initial public offering.
C)A public bond offering.
D)A public stock auction.

Question

Quizplus · Accepted Answer

The first sale of stock in a corporation to the general public is known as an initial public offering (IPO). During an IPO, a company issues shares of stock to the public in order to raise capital. It is the first time that the general public can purchase shares and become part-owners of the company.

The First Sale to the General Public of Stock in a Corporation