In Financial Markets,when a Firm Issues Stock for the First

question 15

Multiple Choice

In financial markets,when a firm issues stock for the first time it is called an

• A)investment portfolio option.
• B)initial public offering.
• C)initial portfolio offering.
• D)investment portfolio offering.

---

Definitions:

LLC

Abbreviation for Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Transferable Interest

The portion of a member's ownership in a limited liability company (LLC) that can be transferred or sold to other parties, typically including the right to receive financial distributions.

Default

Failure to fulfill a legal obligation, especially failure to pay a debt on time.

Profit Share

This refers to a portion of a company's profits allocated to its employees, shareholders, or partners as a form of incentive or bonus.