Which of the following are true about IPOs?
A) An IPO is the first time a firm's shares are listed on a stock exchange and publicly traded.
B) An IPO is the first time a firm sells shares to any investor.
C) After the IPO, shares begin trading on the secondary market.
D) A and C are correct.

Question

Quizplus · Accepted Answer

A) An IPO marks the first time a company's shares are available on a public stock exchange for trading, and C) after an IPO, shares indeed start trading on the secondary market, where investors buy and sell shares among themselves. B) is incorrect because before an IPO, a company might have sold shares to private investors.

Which of the Following Are True About IPOs