? Question

Select the correct answer from each drop-down menu. Complete the paragraph about how the financial markets work.

A stockholder is an investor who owns a portion of the company through shares of stock. Companies issue stocks and bonds to investors through an

A. initial public offering
B. initial private offering
C. initial stock offering



Answer :

Final answer:

Stockholders, also called shareholders, have equity in a company obtained through shares. An IPO allows a firm to raise capital by selling stock to the public, involving shareholders in the corporate governance process.


Explanation:

Stockholders, also known as shareholders, are individuals who own shares in a company, granting them equity and certain rights within the firm. When a company decides to sell stock to the public, it conducts an initial public offering (IPO) to raise financial capital. Shareholders play a crucial role in corporate governance by voting for the board of directors, who oversee the company's management.


Learn more about Stockholders and Initial Public Offering (IPO) here:

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