When a firm is issuing new securities, this is called a(n)________.
A)investment-grade issue
B)seasoned issue
C)initial public offering
D)secondary issue

Question

Quizplus · Accepted Answer

When a firm is issuing new securities for the first time to the public, it is called an initial public offering (IPO). Choice A, investment-grade issue, refers to bonds that are rated as low-risk by credit rating agencies. Choice B, seasoned issue, refers to securities that have already been issued and are being offered again to the public. Choice D, secondary issue, refers to securities that are being sold to the public by existing shareholders or the company itself, but not for the first time.

When a Firm Is Issuing New Securities, This Is Called