The First Public Equity Issue Made by a Company Is

question 70

Multiple Choice

The first public equity issue made by a company is a(n) :

• A)initial private offering.
• B)initial public offering.
• C)secondary offering.
• D)seasoned new issue.
• E)None of the above.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership such as options or warrants.

Liquidation Market

A marketplace where assets are sold quickly, often at a discount, typically due to a company's insolvency or urgent liquidation needs.

Secondary Market

This is a market where investors purchase securities or assets from other investors, rather than from issuing companies directly.

Dealer Market

A financial market mechanism in which transactions are made through dealers who buy and sell securities for their own accounts.