Which of the following is true regarding an initial public offering?
A)The corporation gets proceeds from the investor.
B)Investors get proceeds from other investors.
C)The security is sold for the first time to the public.
D)Both A and C.
E)All of the above.

Question

Quizplus · Accepted Answer

In an initial public offering (IPO), the corporation sells its securities for the first time to the public, and the corporation receives the proceeds from the investors who purchase the securities. Option A is correct. Option B is incorrect because investors do not receive proceeds from other investors in an IPO; they purchase securities directly from the corporation. Option C is correct. Therefore, the best choice is D, as both A and C are true regarding an IPO.

Which of the Following Is True Regarding an Initial Public