Aside from the initial distribution of common stock when the corporation is formed, subsequent sales of additional shares may be made through a procedure known as a:
A) trade-off.
B) public offering.
C) dividend reinvestment plan (DRP).
D) proxy.
E) call.

Question

Quizplus · Accepted Answer

Subsequent sales of additional shares are typically done through a public offering, which involves selling shares to the general public. This is different from a trade-off, which involves exchanging shares with another company or party, a DRP, which involves using dividends to purchase additional shares, a proxy, which is a form of voting by shareholders, or a call, which is a request for shareholders to return their shares to the company for a specific price.

Aside from the Initial Distribution of Common Stock When the Corporation