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easyMCQCUET Accountancy 2022 23 Aug Shift 2 PYQs2026Accountancy
1 mark

An issue of shares made by the company to the public in general for subscription is called :

  1. A
    Private placement of shares
  2. B
    Initial Public Offer
  3. C
    ESOP
  4. D
    Sweat Equity Shares

Solution & Step-by-step Explanation

When an unlisted company makes a fresh issue of shares or convertible securities to the general public for the first time, it is known as an Initial Public Offer (IPO).

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An issue of shares made by the company to the public in general for subscription is called :
A
Private placement of shares
B
Initial Public Offer
C
ESOP
D
Sweat Equity Shares

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