A secondary offering IPO occurs when:

Question

Quizplus · Accepted Answer

A secondary offering IPO occurs when existing shareholders of a company, such as founders, venture capitalists, or early investors, decide to sell a portion of their shares to the public. This differs from a primary offering IPO, where new shares are issued by the company to raise funds for future projects. Option A is incorrect because it refers to a primary offering IPO. Option B is misleading because there is no such thing as a "second public issue of equity," and it does not provide a clear definition of what a secondary offering IPO is. Option D is incorrect because a secondary offering IPO can occur even if all shares from a primary offering IPO have been sold.

A Secondary Offering IPO Occurs When