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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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