SIE Exam Question 91: Answer and Explanation

Question: 91

A ________________ refers to when a company first sells it shares to the public.

• A. Initial public offering
• B. Initial marketing
• C. Initial sales offering
• D. Initial rights offering

Correct Answer: A

Explanation:

An initial public offering refers to the event of a company first offering its shares for sale to the public. Market offerings and initial sales offerings are not generally accepted terms for this event. A rights offering refers to a group of rights, a kind of option, offered to shareholders to purchase more shares.