Question:
Initial
Public offerings (IPO) is for...
1. Selling of securities in the
stock market
2. Issuing of new securities to
public for First time by an unlisted firm.
3. Buying of securities from stock
exchanges
Answer:
2. Issuing of new securities to public
for first time by an unlisted firm.
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Explanation:
Initial
public offer (IPO) -
When an unlisted firm makes either a fresh issue of
securities or offers its existing securities for sale or / both for the first
time to the public, it is called an IPO. This paves way for listing & trading
of the issuer’s securities in the Stock Exchanges.
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