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    Question

    The process of converting a private company into a

    public company by issuing shares to the public for the first time is called:
    A Rights Issue Correct Answer Incorrect Answer
    B Bonus Issue Correct Answer Incorrect Answer
    C Follow-on Public Offer (FPO) Correct Answer Incorrect Answer
    D Initial Public Offering (IPO) Correct Answer Incorrect Answer
    E Private Placement Correct Answer Incorrect Answer

    Solution

    An Initial Public Offering (IPO) is the first sale of a company's stock to the general public, transitioning it from a private to a publicly-traded entity.

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