A publicly-traded firm has just decided to issue an additional 10,000 shares of common stock.The firm plans to offer these shares to the general public next month.Which term applies to this issue of securities?

Question

Quizplus · Accepted Answer

The term that applies to this issue of securities is seasoned equity offer. This term refers to an issue of additional shares by a publicly-traded company that has already issued an initial public offering (IPO) and is seeking to raise additional funds. It differs from an IPO, which is the first sale of a company's stock to the public, and a private placement, which involves the sale of securities directly to a limited number of institutional investors. An in-house offering refers to the sale of securities to employees of the company, while a rights offering involves the sale of shares to existing shareholders in proportion to their existing holdings.

A Publicly-Traded Firm Has Just Decided to Issue an Additional