Existing firms that are already public and wish to raise additional funds may:
A) sell additional securities by using the underwriting process
B) not sell securities to a private party
C) require existing shareholders to buy additional shares
D) have the SEC buy up to 10% of the new shares

Question

Quizplus · Accepted Answer

Existing firms that are already public and wish to raise additional funds may sell additional securities by using the underwriting process. This involves working with an underwriter who helps the firm price and sell the securities to the public. This is a common way for existing firms to raise capital. The other options listed are not typically used for this purpose.

Existing Firms That Are Already Public and Wish to Raise