The first time a company issues stock, it does so through a(n)________.

Question

Quizplus · Accepted Answer

The first time a company issues stock, it does so through an initial public offering (IPO). During an IPO, the company offers shares of stock to the public for the first time, usually with the help of investment banks. This is considered a primary market issuance. Choice A could also be considered correct, as a primary market issuance is essentially the same as an IPO. However, IPO is a more specific term and is a more commonly used answer choice. Choices C and D are incorrect, as tertiary market sales and auction houses are not typically involved in the initial issuance of stock.

The First Time a Company Issues Stock, It Does So