Multiple choice

Which of the following paves the way for listing and trading of the issuer company’s securities whose securities are already not listed on the stock exchange?

  1. Initial public offering

  2. Further public offering

  3. Bonus issue

  4. Rights issue

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer’s securities.