You own 400 of the 21,000 outstanding shares of DLK stock.The firm just announced that it will be issuing an additional 3,000 shares to the general public in a cash offer at $16 per share.What type of event are you participating in if you opt to purchase 100 of these additional shares?

Question

Quizplus · Accepted Answer

A seasoned equity offering is a public offering of stock by a company that has already gone through an IPO. In this case, DLK is issuing additional shares to the general public at a set price per share, which is typical of a seasoned equity offering. By opting to purchase additional shares in the offering, the shareholder is participating in a secondary market transaction.

You Own 400 of the 21,000 Outstanding Shares of DLK