When an already listed company issues fresh securities to the public, what is this issue called?

Introduction / Context:
Capital markets use specific terms to describe the way companies raise funds from investors. One common distinction is between the first time a company sells its shares to the public and subsequent public offerings by a company that is already listed. This question checks whether you know the correct term for a fresh public issue by an already listed company.

Given Data / Assumptions:

• The company is already listed on a stock exchange.
• The company is making a fresh issue of securities to the general public.
• The issue is not restricted only to existing shareholders or a special group of investors.
• We need to choose the standard capital market term used in such a case.

Concept / Approach:
When a company offers its shares to the public for the first time, it is called an Initial Public Offer or IPO. After listing, if the same company raises additional equity from the general public, the offering is referred to as a Follow on Public Offer or FPO. Rights issues and preferential issues are also ways to raise capital, but they have a more limited target group, such as existing shareholders or selected investors.

Step-by-Step Solution:
Step 1: Note that the company is already listed, so it cannot be an Initial Public Offer. Step 2: Check if the offer is restricted to existing shareholders only; this would be a rights issue, but the question mentions the public in general. Step 3: Check if the offer is aimed at a small set of chosen investors; this would be a preferential issue, which is not indicated here. Step 4: Conclude that it is a public offer made after listing, which is known as a Follow on Public Offer. Step 5: Select the option that clearly mentions Follow on Public Offer (FPO).

Verification / Alternative Check:
In most exam oriented texts, IPO and FPO are explained together. IPO is for first time listing, while any subsequent public equity raise is classified as an FPO. Rights and preferential issues are usually defined separately and often do not require an entirely new prospectus for the whole public. Hence, the classification in this question fits the standard definition of an FPO.

Why Other Options Are Wrong:
Initial Public Offer is incorrect because the company is already listed and has therefore already completed an IPO earlier. A preferential issue is a fresh issue to a selected set of investors such as promoters or institutional investors, not a general public offering. A rights issue is offered only to existing shareholders in proportion to their holdings, not to the broader public.

Common Pitfalls:
Candidates sometimes choose IPO whenever they see the phrase issue of shares to public, without noticing whether the company is already listed or not. Another pitfall is confusion between rights issues and FPOs because both involve raising fresh capital. Paying attention to whether the offer is meant for all public investors or only for existing shareholders helps avoid this confusion.

Final Answer:
A fresh public issue of securities by an already listed company is called a Follow on Public Offer (FPO).