When a company makes first issue of shares to the general public it is called

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Solution

The correct option is D IPO
An initial public offering is when a private company or corporation raises investment capital by offering its stock to the public for the first time.

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Similar questions

Q. Many times we read in newspapers that a company is planning to bring a public issue. What does it mean?
A. Shares of the company will be issued only through public sector organisations like banks/Central financial institutions etc.
B. Shares of the company will be issued to general public only through primary market.
C. This means some stakeholders/promoters are willing to leave the company. Hence they wish to sell their stock to the general public.

The directors of a company want to modernise its plant and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for a new public issue of shares. Advise the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

Q. The Directors of a Company want to modernise its plants and machinery by making a public issue of shares. They wish to approach stock exchange. While the finance manager prefers to approach a consultant for the new public issue of shares. Advise the directors whether to approach stock exchange or consultant for the new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

Q. Public companies issue shares to public through document called____.

Fill in the blank:

The company which raises its capital by issuing shares to public is a __________.

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When a company makes first issue of shares to the general public it is called

The correct option is D IPOAn initial public offering is when a private company or corporation raises investment capital by offering its stock to the public for the first time.

The correct option is D IPO
An initial public offering is when a private company or corporation raises investment capital by offering its stock to the public for the first time.