The Initial Issuance of Shares by a Company in an IPO

question 71

Multiple Choice

The initial issuance of shares by a company in an IPO typically represents no more than:

• A) 25%.
• B) 35%.
• C) 45%.
• D) 55%.

---

Definitions:

Net Income

The company's net income following the deduction of all costs and taxes from its total revenue.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and investments, reflected in a company’s cash flow statement.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of the entity.

Operating Activities

Activities that relate to the core business operations of a company, including revenue and expense transactions.