Question

Assure Pharma Corp., a private corporation, sold its stock to raise the money it required for global expansion. As a result, anyone could buy, sell, or trade the stocks of the company. The process adopted by Assure Pharma Corp. to raise money is referred to as _____.

Answer 1

Initial public offering (IPO) refers to the practice of offering the public shares in a new stock issuance of a private corporation.

Step-by-step explanation:

Initial public offering (IPO) refers to the practice of offering the public shares in a new stock issuance of a private corporation. The issuance of public shares allows companies to raise cash from public shareholders.

The transformation from a private business to a public corporation can become an important period for private shareholders to acknowledge their interest income fully, as it usually involves share prices for current private shareholders.