Hi-Tek Shoes is a private firm that has decided to issue shares of stock to the general public. This stock issue will be referred to as a(n):
A)open-end sale.
B)break-out issue.
C)public service offering.
D)initial public offering.
E)initial trial issue.

Question

Quizplus · Accepted Answer

The term commonly used for a private company issuing shares to the public for the first time is an initial public offering (IPO). This makes choice D, "initial public offering," the correct answer. Choices A, B, C, and E are not commonly used terms in relation to a company going public.

Hi-Tek Shoes Is a Private Firm That Has Decided to Issue