You own 100 of the 15,000 outstanding shares of Delta Movers stock.The firm just announced that it will be issuing an additional 5,000 shares to the general public in a cash offer at $22 per share.What type of event are you participating in if you opt to purchase 100 of these additional shares?

Question

Quizplus · Accepted Answer

This is a seasoned equity offering, as Delta Movers is issuing additional shares to the general public after their initial public offering (IPO) and the shares are being sold at a price higher than the original IPO price. A private placement typically involves selling shares to a select group of investors, while a Dutch auction involves investors bidding on shares at various prices. A rights offer involves existing shareholders being given the right to purchase additional shares before they are offered to the general public.

You Own 100 of the 15,000 Outstanding Shares of Delta