Question : When a company is said to have made first time an offer or invited the general public to subscribe for its shares is known as:
Option 1: Issue of share at premium
Option 2: Initial Fund Offer
Option 3: Initial Public Offer
Option 4: None of the above
Correct Answer: Initial Public Offer
Solution : When a company seeks to generate money by selling securities or shares to the public for the first time, it announces an Initial Public Offer (IPO). An unlisted company is not listed on the stock exchange. To put it another way, an IPO is when securities are sold to the general public in the primary market.
Hence the correct answer is option 3.