Fred owns a private company and he needs a steady funding source to finance its growth and expansion.He has decided to issue shares and sell them to the public with a(n)______.
A)quarterly report
B)disclosure of information
C)initial public offering
D)shareholder letter

Question

Quizplus · Accepted Answer

The best choice is option C, initial public offering (IPO), which involves a private company issuing shares and selling them to the public for the first time. This is done through the stock market, where potential investors can buy shares and become shareholders in the company. An IPO requires extensive disclosure of information about the company, including its financials, business plans, and management team. While quarterly reports and shareholder letters are necessary once a company is publicly traded, they are not sufficient for the initial process of going public.

Fred Owns a Private Company and He Needs a Steady