Asked by Keshawn Johnson on Jul 22, 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. The process of doing this is called
A) a stock split.
B) capital gains.
C) an intangible capital investment.
D) an initial public offering.
Initial Public Offering
The first sale of stock by a company to the public, marking the transition from private to public company.
Public Company
A corporation whose shares are publicly traded on stock exchanges, allowing investors to buy and sell shares.
Stock Exchange
A regulated market where securities, such as stocks and bonds, are bought and sold.
- Comprehend the process and significance of an initial public offering (IPO) for private companies.
Verified Answer
JS
James SmithJul 26, 2024
Final Answer :
D
Explanation :
An initial public offering (IPO) is the process by which a private company offers shares of stock to the public for the first time, which is what Tesla Motors did in 2010.
Learning Objectives
- Comprehend the process and significance of an initial public offering (IPO) for private companies.