When a company, working with an underwriter, offers the investing public a certain number of shares of its stock at a certain price, the company is making what is known as a
A) public offering.
B) rights offering.
C) stock spin-off.
D) treasury offering.

Question

Quizplus · Accepted Answer

A public offering is when a company, with the help of an underwriter, offers shares of its stock to the general public at a specific price. This is often done to raise capital for the company or to allow previous investors to sell their shares. A rights offering is when a company offers existing shareholders the opportunity to purchase additional shares of stock, usually at a discounted price. A stock spin-off is when a company creates a new, separate company by distributing shares of the new company's stock to the original company's shareholders. A treasury offering is when a company sells shares of its stock that it already holds in its treasury, rather than issuing new shares.

When a Company, Working with an Underwriter, Offers the Investing