With reference to Public Issues in the Primary Market, consider the following statements: 1. An Initial Public Offering (IPO) refers to the first-time sale of shares by an unlisted company to the general public. 2. A Follow-on Public Offering (FPO) is used by a company to sell its shares to the public before it gets listed on a stock exchange. Which of the statements given above is/are correct? |ForumIAS

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation:

An IPO is when a private/unlisted company offers its shares to the public for the first time, thereby becoming a publicly listed company.
An FPO is used by a company that is already listed on a stock exchange to raise additional funds by issuing more shares. It does not precede listing; it follows an IPO.

Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh