When a Corporation First Decides to Issue Stock to the Public

question 25

Multiple Choice

When a corporation first decides to issue stock to the public, it engages in a(n)

• A)secondary offering.
• B)initial public offering.
• C)seasoned equity offering.
• D)None of these are correct.

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Definitions:

Time Preference

This concept describes individuals' preference for immediate benefits over future ones, influencing their decisions on saving, investing, and consumption.

Time Preference

An individual's preference for receiving goods or services sooner rather than later.

Capital Goods

Long-term physical assets used in the production of goods or services, such as machinery and buildings.

Current Consumption

The total amount of goods and services consumed at the present time, as opposed to savings for future consumption.