Industry Specific · Financial Institutions Groups (FIG)
ICO Versus IPO
This problem asks you to explain what an ICO is and how it differs from an IPO.
Interview question
- Difficulty
- Easy
- Topic
- Industry Specific
- Subtopic
- Financial Institutions Groups (FIG)
What this question trains
This question tests whether you can distinguish between two capital raising structures that sound similar but give investors very different things. In a FIG interview, you are expected to understand the basic mechanics of fundraising, what investors receive in exchange for their money, and how legal, regulatory, and risk considerations shape market perception. The interviewer is also checking whether you can speak clearly about why newer financing structures attract scrutiny, especially when investor protection and oversight are weaker than in traditional public markets.