In respect to the issue of shares by a company, what is an IPO?
A) Investment in preference and ordinary shares.
B) Initial public offering of shares.
C) Investment prospectus for an issue of options.
D) Instruments providing options to ordinary shareholders.

Question

Quizplus · Accepted Answer

IPO stands for Initial Public Offering, which is the first time a company offers its shares to the public for purchase. It is the process of selling shares of a previously private company to new investors, which allows the company to raise capital by issuing new shares. Option C and D are not related to IPOs, and option A refers to investing in already-existing shares rather than the initial offering.

In Respect to the Issue of Shares by a Company