When a Company Offers Stock for the First Time ___________________________

question 30

Multiple Choice

When a company offers stock for the first time ___________________________.

• A) the rating is usually speculative
• B) securities are offered through commercial banks
• C) it is called an initial public offering (IPO)
• D) it is entering the secondary market

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Definitions:

Bankruptcy and Insolvency Act

A federal statute that governs the processes for the bankruptcy and insolvency of individuals and businesses in Canada.

Builder's Lien Act

Legislation that allows contractors and suppliers to place a lien on a property as security for payment for services rendered or materials supplied.

Lien Claim

A right granted by law to a creditor over the property of a debtor as security for the debt.

Bulk Sales Acts

Laws designed to protect creditors by regulating the bulk transfer of business assets outside the regular course of business.