In respect to a company's issue of shares, an IPO is an:
A) Instruments providing options to ordinary shareholders.
B) Investment in preference and ordinary shares.
C) Investment prospectus for an issue of options.
D) Initial public offering of shares.

Question

Quizplus · Accepted Answer

An IPO (Initial Public Offering) refers to the first time a company offers shares of its stock to the public, allowing individuals to buy and own a small portion of the company. Therefore, D is the correct choice as it specifically refers to the initial public offering of shares. A, B, and C are incorrect as they do not accurately describe an IPO.

In Respect to a Company's Issue of Shares, an IPO