ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -They can achieve these goals by selling shares in the company to the general public, through a sale on a stock exchange. This process is called an initial public offering, or IPO. By selling shares they can sell part or all of the company to many part-owners.

Detailed explanation-2: -Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

Detailed explanation-3: -Going public typically refers to when a company undertakes its initial public offering, or IPO, by selling shares of stock to the public, usually to raise additional capital. Going public is a significant step for any company and you should consider the reasons companies decide to go public.

Detailed explanation-4: -Common Stock. Common stock is, well, common. Preferred Stock. Preferred stock represents some degree of ownership in a company but usually doesn’t come with the same voting rights. Different Classes of Stock.