4-15 Initial public offerings (IPOs)are first-time issues of firms whose equity has not previously traded in an organized market.

Question

Quizplus · Accepted Answer

This statement is true. IPOs are the first time a company's equity is offered for public sale and trading on an organized market, such as a stock exchange. Prior to an IPO, the company's shares are typically held by private investors, such as founders, employees, and venture capitalists.

4-15 Initial Public Offerings (IPOs)are First-Time Issues of Firms Whose