💼 Pre-MBA Exam Prep

An IPO (Initial Public Offering) is:

A A private sale of shares
B The first time a private company offers its shares to the public on a stock exchange
C A bond issuance
D A stock buyback

✓ Correct Answer: Option B

IPO: transition from private to public company. Investment banks underwrite the offering. Company raises capital, gains public market access, but faces regulatory requirements (SEC filings, disclosure).

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