PRC-3 · Chapter 4 · Question 31 of 65
A successful private software firm wants to expand globally and decides to sell shares to the general public on the stock market for the first time. This specific capital-raising event is known as an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Initial Public Offering (IPO)
Explanation
An IPO is the very first time a privately held company issues shares to the public to raise equity capital.
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