Initial Public offerings (IPO) is for...

Question:

Initial Public offerings (IPO) is for...
            1. Selling of securities in the stock market
            2. Issuing of new securities to public for First time by an unlisted firm.
            3. Buying of securities from stock exchanges

Answer:
            2. Issuing of new securities to public for first time by an unlisted firm.



Explanation:
Initial public offer (IPO) - 
When an unlisted firm makes either a fresh issue of securities or offers its existing securities for sale or / both for the first time to the public, it is called an IPO. This paves way for listing & trading of the issuer’s securities in the Stock Exchanges.

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