Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year.In order to expand distribution world wide,the company whose product produces lush green foliage needs a large amount of funding - fast! The handful of seed scientists that own the company decides to offer shares of stock to general investors.This first-time offering is an):
A)Stock Equity Commission SEC)
B)Stock Fund Offering SFO)
C)Broad Based Offering BBO)
D)Initial Public Offering IPO)

Question

Quizplus · Accepted Answer

This is an Initial Public Offering (IPO), which is the first time a private company offers shares of stock to the general public in order to raise capital and expand distribution.

Arborview Plant Science Company Has Invented a Drought Resistant Grass