Question

When a corporation is converted from privately held to publicly held, it is likely to have done so by:

a. borrowing money from commercial lenders.
b. engaging in an initial public offering.
c. selling its equity to private investors.
d. restricting the number of owners it may have.

Answer 1

When a corporation is converted from privately held to publicly held, it is likely to have done so by engaging in an initial public offering (IPO).

Step-by-step explanation:

When a corporation is converted from privately held to publicly held, it is likely to have done so by engaging in an initial public offering (IPO). An IPO is the first sale of a company's stock to the public. By issuing stock, the company sells ownership of the company to private investors and becomes responsible to a board of directors and shareholders.