Soup Galore is a partnership that was formed three years ago for the purpose of creating,producing,and distributing healthy soups in a dried form.The firm has been extremely successful thus far and has decided to incorporate and offer shares of stock to the general public.What is this type of an equity offering called?

Question

Quizplus · Accepted Answer

The equity offering described in the scenario is an initial public offering (IPO) because the firm is offering shares of stock to the general public for the first time after previously being a private partnership. Choice A, venture capital offering, refers to raising capital from private investors. Choice B, shelf offering, refers to a method of issuing securities where a company can register a stock with the SEC and issue it at a later date. Choice C, private placement, refers to offering securities to a select few private investors. Choice D, seasoned equity offering, refers to a company that has already gone public offering additional shares of stock to raise additional capital.

Soup Galore Is a Partnership That Was Formed Three Years