ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -What Are Stocks? A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called “shares” which entitles the owner to a proportion of the corporation’s assets and profits equal to how much stock they own.

Detailed explanation-3: -An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Companies must meet requirements by exchanges and the Securities and Exchange Commission (SEC) to hold an IPO.

Detailed explanation-4: -Initial or opening stock refers to the quantity of a particular item at the start of the accounting period, and is typically done when you migrate your inventory into Zoho Books from another accounting application.