When a High-Growth Company First Makes Its Shares Available to Investors

question 141

Short Answer

When a high-growth company first makes its shares available to investors, it has an IPO because it needs to raise more funds to continue its growth. What is an IPO?

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Definitions:

Accounting Period

A specific time frame in which financial transactions are recorded and financial statements are prepared, commonly a fiscal quarter or year.

Voting Common Stock

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors, at shareholder meetings.

Long-Term Investments

Assets that a company intends to hold for more than one year, such as stocks, bonds, real estate, and other securities.

Accounting Period

A specific period of time used for financial reporting purposes, which could be monthly, quarterly, or annually.