The returning of all funds to equity investors as a common remedy for a fouled-up securities offering is called:

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A rescission is the returning of all funds to equity investors as a common remedy for a fouled-up securities offering. This is typically done when there has been a material omission or misstatement in the offering documents, and is meant to put investors back in the position they were in before they invested. It is not the same thing as fraud, although fraud could be a reason for a rescission. Second-round financing is a type of funding that occurs after a company has already received some level of investment from external sources. Just action is not a relevant term in this context.

The Returning of All Funds to Equity Investors as a Common