What is the primary purpose of an Initial Public Offering (IPO)?
"To raise capital for business expansion"
"To launch a new mutual fund"
"To invest in bonds and stocks"
"To acquire another company"
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Which of the following is a key difference between an IPO and an NFO?
"IPOs are for new stock, while NFOs are for new mutual funds"
"IPOs are issued by companies, while NFOs are issued by individuals"
"IPOs are listed on the stock market, while NFOs are not"
"IPOs are considered low risk, while NFOs are considered high risk"
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What does NAV represent in the context of a mutual fund?
"Net Asset Value, reflecting the current value of the fund's holdings"
"Non-performing Asset Value, indicating the risky investments in the fund"
"New Asset Valuation, determined at the time of the NFO"
"Notional Asset Value, an estimated value of the fund's future performance"
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Which investment option is generally considered more suitable for investors with a low to moderate risk appetite?
"IPO"
"NFO"
"Both IPO and NFO"
"Neither IPO nor NFO"
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How are funds typically utilized in an IPO?
"To purchase bonds and stocks"
"To pay dividends to existing shareholders"
"To fund business operations, expansion, and marketing"
"To invest in real estate and other assets"
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