Which of the following describes $$IPO $($the acronym of Initial Public Offering$)$ most appropriately?

Group of answer choices

$4)1)$ & $2)$ only

$2)$ IPO is a procedure that enables a private company to trade its stocks in a public stock market. It requires a group of underwriters that are often big banks and investment companies.

$5)1)$ & $3)$ only

$1)$ IPO stands for the activity of any small companies selling their stocks in a stock market when they need additional capital $($cash$)..$

$3)$ IPO means that a private company offers its own stocks to big investment banks when the company is in the process of becoming a public corporation.