The Very First Public Equity Issue That Is Made by a Company

question 63

Multiple Choice

The very first public equity issue that is made by a company is referred to as:

• A) A rights issue
• B) American depositing receipts (ADRs)
• C) An initial public offering (IPO)
• D) A seasoned equity offering (SEO)

---

Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments such that supply equals demand, and no economic profits are earned.

Increased Demand

A situation where the desire or need for a product or service grows, often leading to higher sales or consumption.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and easy entry and exit from the market.

Long Run

A period in which all factors of production and costs are variable, enabling full adjustment to change.