When a company that is already publicly-held issues new shares, it is called a
A)secondary offering.
B)reverse offering.
C)after-market offering.
D)seasoned equity offering.

Question

Quizplus · Accepted Answer

When a company that is already publicly-held issues new shares, it is called a seasoned equity offering. A secondary offering typically refers to the sale of existing shares by current shareholders, a reverse offering is not a commonly used term, and after-market offering is not a specific industry term. When a company that is already publicly-held issues new shares, it is called a seasoned equity offering (SEO). This is different from an initial public offering (IPO), which is when a company issues shares for the first time and becomes publicly traded. A secondary offering refers to a company issuing additional shares after its IPO, while reverse offering and after-market offering are not commonly used terms in finance.

When a Company That Is Already Publicly-Held Issues New Shares