ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An initial public offering (IPO) is the event when a privately held organization initially offers stock shares in the company on a public stock exchange. The act of having an IPO is sometimes referred to as “going public, ” as it enables the general public to participate in trading shares in a specific company.

Detailed explanation-2: -The given statement is True: An Initial Public Offering (IPO) is the process of issuing shares to the general public and getting the equity stocks listed on a stock exchange so that they can be bought or sold by common investors. When a company gets listed on stock exchanges, it becomes a public company.

Detailed explanation-3: -When a private company first sells shares of stock to the public, this process is known as an initial public offering (IPO). In essence, an IPO means that a company’s ownership is transitioning from private ownership to public ownership.

Detailed explanation-4: -An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company. An IPO is an important step in the growth of a business.

Detailed explanation-5: -The correct option is B 2 only. Explanation: Statement 1 is incorrect: IPO is the process when a company sells its shares for the very first time to the public. It is called an initial public offering for this reason.