Bubba Corporation has a registered public offering of 500,000 shares at $36. Of these, 300,000 shares were authorized by unissued and 200,000 shares were sold on behalf of an affiliated person. What is evident from this information?
A)the entire proceeds of the offering are a primary offering accruing to the corporation
B)300,000 shares are identified as a primary distribution
C)60% of the proceeds are paid to the corporation and the balance accrues to the affiliated person
D)both B and C

Question

Quizplus · Accepted Answer

both B and C. The 200,000 shares are sold on behalf of the affiliated person so the proceeds go to that individual. Only the other 300,000 shares are a primary offering.

Bubba Corporation Has a Registered Public Offering of 500,000 Shares