Generally,an Initial Public Offering Is

question 19

Multiple Choice

Generally,an initial public offering is:

• A) an offer to potential investors of ordinary shares to newly list a company on a stock exchange.
• B) an offer to potential investors of preference shares to newly list a company on a stock exchange.
• C) an offer to potential investors of company debentures to newly list a company on a stock exchange.
• D) an offer to potential investors of unsecured notes to newly list a company on a stock exchange.

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Definitions:

Multiplier

The factor by which a change in investment, government spending, or other forms of economic activity is magnified in the overall economy.

Budget Deficits

A financial situation where a government's expenditures exceed its revenue over a specified period, leading to borrowing or debt accumulation.

Recessions

Periods in an economy when business activities reduce, leading to higher unemployment and lower spending and investment.

Inflations

A widespread rise in prices accompanied by a decrease in money's buying power.