In primary markets, the first time issued shares to be publicly traded, in stock markets is considered as ___________?
Correct answer: D. initial public offering
- A. traded offering
- B. public markets
- C. issuance offering
- D. initial public offering
Explanation
An initial public offering, or IPO, is the first sale of a company's shares to the public through a stock exchange. The other options are not the standard term for this first public issue.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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