An equity issue that raises new funds for a publicly traded company is called ________.

Question

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A seasoned equity offering is when a company that is already publicly traded issues new shares of stock to the public in order to raise more funds. An initial public offering is the first time a company goes public and sells shares to the public. An underpriced offering refers to when the initial public offering price is set lower than the expected market price. A secondary offering is another type of equity issue where existing shareholders sell their shares to the public, rather than the company issuing new shares.

An Equity Issue That Raises New Funds for a Publicly