The ﬁrst public equity issue made by a company is a(n):

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The first public equity issue made by a company is called an initial public offering (IPO). It is the first time that shares of a company are offered for sale to the general public on a stock exchange. Choice A, initial private offering, refers to the initial sale of shares to a select group of investors before the company goes public. Choice C, stock exchange secondary offering, refers to the sale of additional shares to the public by a company that is already publicly traded. Choice D, seasoned new issue, refers to the sale of new shares by a company that is already publicly traded and has an established track record in the market.

The ﬁRst Public Equity Issue Made by a Company Is