Which of the Following Is the Firm Allowing Its Equity

question 11

Multiple Choice

Which of the following is the firm allowing its equity, some of which was held privately by managers and venture capital investors, to be publicly traded in stock markets for the first time?

• A) Over the counter market transaction
• B) Private market transaction
• C) Initial public offering
• D) Public market transaction

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Definitions:

Opportunity Costs

The penalty of bypassing the next most advantageous option when a decision is made.

Small Business

A privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a medium or large company.

Risk-Free

Refers to an investment that is considered to have no risk of financial loss.

Perfectly Competitive Market

A market structure characterized by a large number of small firms, homogeneity of products, free entry and exit, and perfect information, leading to firms being price takers.