What is an initial public offering (IPO)?
Q: What is an initial public offering (IPO)?
A: An initial public offering (IPO) is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time.
Q: What is a public offering?
A: A public offering is any tradable asset that is offered to the public.
Q: Why do companies conduct initial public offerings?
A: Companies conduct initial public offerings to raise money for expansion and to become publicly traded enterprises.
Q: What happens when a private company conducts an initial public offering?
A: When a private company conducts an initial public offering, it transforms into a public company.
Q: What is the purpose of selling shares in an initial public offering?
A: The purpose of selling shares in an initial public offering is to raise money for the company.
Q: Is a company required to repay the money to the people who buy shares in an initial public offering?
A: No, a company selling shares in an initial public offering is never required to repay the money to the people who buy them.
Q: Where are shares of stock in a company sold during an initial public offering?
A: Shares of stock in a company are sold to the general public on a securities exchange during an initial public offering.
