Asked by Tyler Thompson on Apr 29, 2024
Verified
Related to the Economics in Practice on page 235: In 2010, Tesla Motors decided to become a public company by offering shares of stock to the public on a stock exchange. Like most other firms, Tesla relied on ________ to manage the sales of stock from its Initial public offering.
A) inside management
B) investment banks
C) its board of directors
D) the Federal Reserve
Initial Public Offering
The process through which a private company goes public by offering its stocks to the public for the first time.
Investment Banks
Financial institutions that assist individuals, corporations, and governments in raising capital by underwriting or acting as the client's agent in the issuance of securities.
Tesla Motors
An American electric vehicle and clean energy company founded by Elon Musk, known for its innovative electric cars, solar products, and battery energy storage.
- Understand the procedure and importance of conducting an Initial Public Offering (IPO) for privately held firms.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
B
Explanation :
Investment banks are typically relied upon by companies to manage the sales of stock during an Initial Public Offering (IPO). They help in setting the price of the shares, underwriting them, and marketing them to potential investors.
Learning Objectives
- Understand the procedure and importance of conducting an Initial Public Offering (IPO) for privately held firms.