n NISM Certifications
VII NISM Series VII
Medium

The process by which a company offers its shares to the public for sale for the first time is known as _________.

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rights Issue

  2. B

    Follow on Public Offer (FPO)

  3. Initial Public Offer (IPO)

    Correct answer

  4. D

    Private Placement

Why this is the answer

An IPO is the first public offering of a company’s shares.

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