Question

Primary market financial instruments include stock issues from firms allowing their equity shares to be publicly traded on the stock market for the first time. We usually refer to these first-time issues as which of the following?

a) initial public offerings
b) direct transfers
c) money market transfers
d) over-the-counter stocks

Answer 1

The answer is: A) Initial public offering

Step-by-step explanation:

An initial public offering (IPO) of a corporation happens when it sells shares of its stock on the open market for the first time. Corporations use IPOs to raise capital, usually to fund growth strategies and operations.

Many times an IPO is referred to as a company going public, since before an IPO a company is considered private.