When stock in a closely held corporation is offered to the public for the first time the transaction is called "going public" and the market for such stock is called the initial public offering,or IPO,market.

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This statement is correct. When a closely held corporation makes its shares available to the general public for the first time, the process is known as "going public." The market for such shares is called the initial public offering (IPO) market.

When Stock in a Closely Held Corporation Is Offered to the Public