Final answer:
The statement is false. IPO stands for Initial Public Offering, which is the first sale of shares of stock by a company to outside investors. It allows the company to raise funds and expand its operations.
Step-by-step explanation:
No, the statement is false. The acronym IPO stands for Initial Public Offering, not independent public offering. An IPO is the first sale of shares of stock by a company to outside investors. It is an important event for a firm as it provides the company with funds to repay early-stage investors and allows for the expansion of operations. For example, a venture capital firm may hold a 40% ownership in a company and sells its part ownership to the public during an IPO.