If a security is a first-time placement for a firm, it is called a(n):
A) initial public offering.
B) first time equity offering.
C) primary offering.
D) secondary offering.
E) seasoned offering.

Question

Quizplus · Accepted Answer

An initial public offering (IPO) is a type of primary offering where a company offers securities to the public for the first time. It is often used by private companies to become publicly traded and raise capital through equity financing.

If a Security Is a First-Time Placement for a Firm