Which of the following best describes the purpose of an initial public offering

(IPO) ?

O

A. To raise money to fund a company's activities

O

B. To prevent the company from being taken over

O

c. To give investors a say in the membership of the board of

directors

O

D. To allow the government to regulate the company's activities

Question

Hugh Thomas

Business

6 January, 22:42

Which of the following best describes the purpose of an initial public offering

(IPO) ?

O

A. To raise money to fund a company's activities

O

B. To prevent the company from being taken over

O

c. To give investors a say in the membership of the board of

directors

O

D. To allow the government to regulate the company's activities

+3

Answers (1)

Know the Answer?

Diya Strong · Answer 1

the correct answer is A. To raise money to fund a company's activities

Explanation:

Initial Public Offering is where the company issues their shares to raise funds that are needed for the growth and expansion of the company for the first time.

according to the laws of the stock exchange a company is registered in, a certain portion of ownership is offered for the general public as a share price set by a valuation company.

public offerings are the only time the company gets money from issuing shares.