Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

In the world of the Financial market, IPO stand for:

Options:

Indian Private Organisation

Initial Public Offer

International Public Offer

Initial Public Offset

Correct Answer:

Initial Public Offer

Explanation:

The correct answer is option 2- Initial Public Offer.

A company proposing to issue capital to the public through the online system of the stock exchange has to enter into an agreement with the stock exchange. This is called an Initial Public Offer (IPO). SEBI registered brokers have to be appointed for the purpose of accepting applications and placing orders with the company. The issuer company should also appoint a registrar to the issue of having electronic connectivity with the exchange.