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

A seasoned equity offering is when a company, that already has shares trading in the public market, issues additional shares to the public. In this case, Delta Movers is issuing 5,000 additional shares to the general public at a price of $22 per share. As a current shareholder, if you opt to purchase 100 of these additional shares, you will be participating in the seasoned equity offering.

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