ABC Corporation is selling additional shares of common stock.Although ABC Corporation has already sold shares of stock in the public equity markets,these are new shares of stock,and have never been sold or traded previously.This is called a(n)
A)initial public offering.
B)seasoned new issue.
C)secondary issue.
D)blue chip issue.
E)none of the above.

Question

Quizplus · Accepted Answer

This is called a seasoned new issue, which refers to the process of a company that has already gone public issuing additional shares to the market. An initial public offering (IPO) is the first sale of stock by a company to the public. A secondary issue would involve existing shares being sold by one investor to another, not the company issuing new shares. A blue chip issue refers to the stock of a large, well-established, and financially sound company that has operated for many years, not specifically to new or additional shares being issued.

ABC Corporation Is Selling Additional Shares of Common Stock