suppose a company issues 30 per cent of its stock for the first time, it is IPO. now next when it issues the remaining 70 per cent shares,is it IPO
Question
suppose a company issues 30 per cent of its stock for the first time, it is IPO. now next when it issues the remaining 70 per cent shares,is it IPO
Solution
When a company issues 30% of its stock for the first time, it is called an Initial Public Offering (IPO). An IPO is the process through which a private company becomes a publicly traded company by offering its shares to the public for the first time.
Now, if the company decides to issue the remaining 70% of its shares after the initial 30% IPO, it would not be considered another IPO. The initial IPO is the first offering of shares to the public, and any subsequent offerings of shares by the company would be referred to as secondary offerings or follow-on offerings.
In summary, the remaining 70% shares issuance would not be considered an IPO, but rather a secondary offering.
Similar Questions
Which is refers to the process of offering shares of a private corporation to the public in a new stock issuance.a.POb.NPOc.IPOd.UPO
A corporation may have issued more shares of stock than it has outstanding. This statement is
An entrepreneur can cash out immediately after the completion of an initial public offering (IPO).Group of answer choicesTrueFalse
Comparison of the market price of the share with the earnings per share gives us which ratio?a.Interest coverb.Dividend yieldc.Price/Earnings ratiod.IPO
The number of shares a corporation has outstanding may exceed the amount of shares authorized. This statement is
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.