Question : In context of the stock market, IPO stands for:
Option 1: Immediate Payment Order
Option 2: Internal Policy Obligation
Option 3: Initial Public Order
Option 4: International Payment Obligation
Correct Answer: Initial Public Order
Solution : The correct option is Initial Public Order.
In the context of the stock market, IPO stands for Initial Public Offering. This denotes the initial issuance of a company's stock to the public for purchase on a stock exchange. This event holds great importance for a company, as it provides them with the opportunity to raise capital by selling shares to the public. The IPO process entails compliance with regulatory requirements and is usually overseen by investment banks. After the IPO concludes, the company's shares are available for trading among individual and institutional investors on the open market.
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