A(n) _____ is the first time a company issues stock that may be bought by the general public.

Question

Quizplus · Accepted Answer

An initial public offering, or IPO, is the first time a company offers stocks to the public for purchase. Choice A, alternative public offering, is not a common term and is not used to describe an IPO. Choice B, reverse public offering, is a type of transaction where a private company merges with a public company with no operating assets, in order to become publicly traded. Choice D, direct public offering, is similar to an IPO but there is no involvement or underwriters, which have the responsibility for placing shares with investors.

A(n) _____ Is the First Time a Company Issues Stock