Question

The only reward the Initial Public Offer investors seek is ________________ of their investment.

Answer 1

The only reward that IPO investors seek is an appreciation of their investment and possibly dividends.

Answer 2

Answer:  

The only reward the initial public offer investors seek is an “increase” in their investment.

Explanation:  

IPOs are important as it is the first instance of a company’s issuance of new stocks in the public. This allows the organization to raise its capital for its own operations and future investments and initiatives. The public can invest their money on this if they believe in the initiative and the company.

IPOs generally bring a lot of appreciation for the investors and hence is of much demand from blue-chip companies. The investors of IPO just seek an increase in their value of stock and possibly sufficient dividend earnings.