Question

A company is said to be publicly traded when its stocks are

A) sold in the primary market

B) bought and sold in the secondary market

C) sold in an IPO

D) bought and sold by a full-service brokerage

Answer 1

C) sold in an IPO

Step-by-step explanation:

When a company goes public for the first time, they sell their shares through an IPO (initial public offering) to outside investors. One of the reasons why a an initially private companies may decide to go public is when it starts to expand its operations and there is a need for external financing to continue growing . Another reason for seeking public funding is to put it towards research and development that a company needs to grow and keep making money.