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What is an initial public offering?

  1. A The first sale of a company's shares to the public in the primary market
  2. B A secondary market trade
  3. C A private placement
  4. D A bond issue
Answer

The first sale of a company's shares to the public in the primary market

The company receives the proceeds in the primary market. Subsequent exchange trading is secondary and raises no capital for the issuer.

All Investment Banking MCQs

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