IPO QUIZZ

What is the definition of an Initial Public Offering (IPO)?

• The first sale of stock by a company to the public.

• The process of a company going bankrupt and selling its assets to the public.

• The sale of stock by a company to its employees.

• The process of buying shares of a company from existing shareholders.

When does a company typically go for an IPO?

• When it wants to go bankrupt

• When it wants to merge with another company

• When it wants to reduce its market value

• When it wants to raise capital by offering its shares to the public for the first time.

What are the benefits of an IPO for a company?

• Reducing capital, decreasing liquidity, diminishing brand visibility, repelling top talent, and hindering future growth.

• No benefits at all.

• Increasing costs, decreasing revenue, and damaging reputation.

• Raising capital, increasing liquidity, enhancing brand visibility, attracting top talent, and providing a platform for future growth.

What is the role of underwriters in an IPO?

• Underwriters assist in the legal process of filing the IPO paperwork.

• Underwriters are responsible for managing the company's finances after the IPO.

• Underwriters help determine the allocation of shares to investors in an IPO.

• Underwriters help determine the offering price, underwrite and sell shares, and provide marketing support.

What is the difference between a primary market and a secondary market in relation to IPOs?

• The primary market is where previously issued securities are bought and sold among investors, while the secondary market is where securities are traded between companies.

• The primary market is where previously issued securities are bought and sold among investors, while the secondary market is where new securities are issued and sold for the first time.

• The primary market is where new securities are issued and sold for the first time, while the secondary market is where securities are traded between companies.

• The primary market is where new securities are issued and sold for the first time, while the secondary market is where previously issued securities are bought and sold among investors.

The primary market is also called

• New issue market

• IPo

• stock exchange

• over the counter market

What is FPO

• Final private offer

• First public order

• Final public offer

• None of the above

Buying equity shares is known as ____ investment.

• easy

• equity

Statutory body governing the capital market

• Commercial Banks

• RBI

• SEBI

• IDBI