You hold 5,000 shares of the 1 million outstanding shares of Wealthy Wranglers common stock. You've just learned that the company plans to issue more shares, so that 2 million shares will be outstanding. This is called ________.

Question

Quizplus · Accepted Answer

This is called a seasoned equity offering, which is a type of stock offering where a company that has been publicly traded for a certain period of time issues new shares in order to raise capital. This is different from an initial public offering (IPO), which is the first sale of stock by a company to the public. "Advanced", "weathered", and "veteran" equity offerings are not recognized terms in finance.

You Hold 5,000 Shares of the 1 Million Outstanding Shares