The sale of new shares of common stock is a secondary offering.

Name: The sale of new shares of common stock is a secondary offering.
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Question

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The sale of new shares of common stock by a company is considered a primary offering because the company itself is issuing new shares directly to investors for the first time, raising new capital. A secondary offering involves the sale of existing shares directly from one investor to another and does not involve the issuance of new shares by the company.

The Sale of New Shares of Common Stock Is a Secondary