Asked by Christina Kiersey on Feb 18, 2024
Verified
What will be the first opportunity for the investor to sell stocks on the stock market?
A) at any time after the initial investment
B) when the company is profitable,usually after 5 years
C) with the company's initial public offering (IPO)
D) whenever there is a buyer
Opportunity
A way of generating profit through unique, novel, or desirable products or services that have not been previously exploited.
- Understanding the concept of liquidity in the stock market.
- Recognizing the different factors that can influence the timing of selling stocks.
- Identifying the significance of profitability in relation to selling stocks.
Verified Answer
AN
Allen NewsonFeb 18, 2024
Final Answer :
C
Explanation :
The first opportunity for an investor to sell stocks on the stock market is with the company's initial public offering (IPO), when the company first makes shares available to the public. After this, the investor can sell their shares at any time on the stock market, provided that there is a buyer. It is not necessary to wait for the company to become profitable or for any specific length of time before selling shares.
Learning Objectives
- Understanding the concept of liquidity in the stock market.
- Recognizing the different factors that can influence the timing of selling stocks.
- Identifying the significance of profitability in relation to selling stocks.