Question

1. fill in the blanks in the chart.

company x wants to be traded on the stock market.
investors invest so that the company can be publicly traded. this is known as an ______.
more investors buy shares. as demand increases, the stock price ______.
some investors are selling their shares. as demand decreases, the stock price ______.

Explanation:

1. The first blank (where "known as an" is) refers to a company that is publicly traded, which is an "IPO (Initial Public Offering)" or more accurately, the process of going public is an IPO, but the term for the company being publicly traded is a "public company" or the event is an "IPO". Wait, actually, when a company wants to be traded on the stock market and investors invest so the company can be publicly traded, this process is an Initial Public Offering (IPO). Then, for the next blanks: when more investors buy shares, demand increases, so the stock price "increases". When some investors sell their shares, demand decreases, so the stock price "decreases". Let's correct:

First blank (the process of the company going public): "IPO (Initial Public Offering)" or "Initial Public Offering". Then, the middle right blank: when more investors buy, demand increases, so stock price "increases". Middle left blank: when investors sell, demand decreases, so stock price "decreases".

Wait, let's parse the chart:

Top box: Company X wants to be traded on the stock market.

Middle box: Investors invest so that the company can be publicly traded. This is known as an _______.

Then, two lower boxes:

Right lower: More investors buy shares. As demand increases, the stock price _______.

Left lower: Some investors are selling their shares. As demand decreases, the stock price _______.

So:

1. The middle box blank: When a company goes from private to public trading, it's an Initial Public Offering (IPO). So "Initial Public Offering" or "IPO".

1. Right lower blank: More buyers (investors) increase demand, so stock price "increases" (or "rises").

1. Left lower blank: More sellers (investors selling) decrease demand, so stock price "decreases" (or "falls").

Answer:

Middle box: Initial Public Offering (IPO)
Right lower box: increases (or rises)
Left lower box: decreases (or falls)