A new issuance of stocks is called a(n).

Question

Quizplus · Accepted Answer

A new issuance of stocks is typically referred to as an "initial public offering" (IPO). This is when a company first sells shares of its stock to the public in order to raise capital. Choice A ("pre-emptive sale") is not a commonly used term in finance, and does not specifically refer to a new issuance of stocks. Choice C ("preferred sale") is also not a commonly used term, and does not specifically refer to a new issuance of stocks either. Choice D ("proxy") refers to the process of granting someone else the authority to vote on your behalf at a shareholders' meeting, and is not related to new issuances of stocks.

A New Issuance of Stocks Is Called A(n)