Purchasing a security of a company that is issuing their stock for the first time publicly would be considered:
A)a secondary market transaction.
B)an initial public offering.
C)a seasoned new issue.
D)both A and B.

Question

Quizplus · Accepted Answer

Purchasing a security of a company that is issuing their stock for the first time publicly is known as an initial public offering (IPO). It is not a secondary market transaction as it is the first time the stock is being offered to the public. It is also not a seasoned new issue, which refers to a company issuing a public offering after already having issued stock in the past.

Purchasing a Security of a Company That Is Issuing Their