Vidyalelo
Commerce · Q936

Financial Management

Graduate and Post Graduate · Commerce · question 936

Q936

Process of selling company stock at large to general public and get lending from banks is classified as an

A.
initial public offering
Answer
B.
external public offering
C.
internal public offering
D.
unprofessional offering

Answer: Option A

Solution

Answer: Option A
Solution:
Process of selling company stock at large to general public and get lending from banks is classified as an initial public offering. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.