Initial public offerings are more frequently issued during which stage of the industry life cycle?
A)Stage 1 - start-up stage
B)Stage 2 - rapid growth and little competition stage
C)Stage 3 - intense competition stage
D)Stage 4 - stabilization and maturity stage

Question

Quizplus · Accepted Answer

Initial Public Offerings (IPOs) are more frequently issued during the rapid growth and little competition stage of the industry life cycle. This is because companies at this stage are looking to capitalize on their growth prospects by raising capital from the public to fund expansion, innovation, and to establish a market presence before the industry becomes too crowded.

Initial Public Offerings Are More Frequently Issued During Which Stage