A company is said to be publicly traded when its stocks are

A) sold in the primary market

B) bought and sold in the secondary market

C) sold in an IPO

D) bought and sold by a full-service brokerage

Question

Business

Solomon Pitts

19 December, 06:21

A company is said to be publicly traded when its stocks are

A) sold in the primary market

B) bought and sold in the secondary market

C) sold in an IPO

D) bought and sold by a full-service brokerage

+4

Answers (1)

Know the Answer?

Connor Freeman · Answer 1

C) sold in an IPO

Explanation:

When a company goes public for the first time, they sell their shares through an IPO (initial public offering) to outside investors. One of the reasons why a an initially private companies may decide to go public is when it starts to expand its operations and there is a need for external financing to continue growing. Another reason for seeking public funding is to put it towards research and development that a company needs to grow and keep making money.

A company is said to be publicly traded when its stocks areA) sold in the primary marketB) bought and sold in the secondary marketC) sold in an IPOD) bought and sold by a full-service brokerage

A company is said to be publicly traded when its stocks are

A) sold in the primary market

B) bought and sold in the secondary market

C) sold in an IPO

D) bought and sold by a full-service brokerage