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SSC CPO 2019 PYQ — Question 59

SSC CPO Tier I - 11th December 2019 - Shift 1 • General Awareness • Q59

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In the context of capital markets, the abbreviation 'FPO' stands for:

Show answer & explanation

Correct answer: C

Explanation

The correct answer is Option 3 i.e. Follow-on Public Offer.

  • FPO is the issuance of additional shares made by a company after an initial public offering (IPO).
  • Companies usually announce FPOs to raise equity or reduce debt.
  • In FPO, the investors are aware as the company is already listed on the stock exchange so it is less risky.
  • The two main types of FPOs are:-
    • Dilutive means new shares are added.
    • Non-dilutive means existing private shares are sold publicly.