Read carefully and answer the following short-answers questions: 1) Explain in your own words what is an IPO and how it works (5 points) An IPO (Initial Public Offering) is a brokerage company that helps companies to sell or issue financial securities for their first time in the financial market. 2) Explain in your own words what is a financial security (5 points) A financial security is all about shareholders, financial assets that a company has in order to cover their future financial goals. 3) Use the concepts and definitions seen in class to explain what is a bond (10 points) 4) Explain why shareholders are told to be residual claimers (5 points)