An initial public offering
A)Allows a company to borrow funds for investment and growth.
B)Allows a company to raise money without increasing debt.
C)Indicates the demand for a company's new product.
D)Increases the percentage of the company owned by the management and original entrepreneurs.

Question

Quizplus · Accepted Answer

An IPO allows a company to raise funds by selling shares to the public, thereby raising money without increasing debt.

An Initial Public Offering