CMA Intermediate · Financial Management and Business Data Analytics · Financial Institutions
In the primary market, when a company raises capital by offering shares directly to the public through an offer document for the first time, the process is called:
The process is called an Initial Public Offer. It is the first time a company offers its shares to the public through an offer document, and it takes place in the primary market. Secondary trading, call money and repo do not involve fresh capital raising from the public.
- AInitial Public OfferCorrect
- BSecondary market trading
- CCall money lending
- DRepo transaction
Explanation
An Initial Public Offer is the first sale of a company's shares to the public and takes place in the primary market. Secondary market trading involves existing securities between investors. Call money and repo are money market transactions.
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