What is an example of a seasoned equity offering?
A)Shares are sold by founding members from their holdings in the primary market.
B)Unsubscribed new shares from the previous IPO are sold in the secondary market.
C)New shares are sold to the general public by companies in the primary market.
D)Used shares are sold to existing shareholders in the secondary market.

Question

Quizplus · Accepted Answer

A seasoned equity offering (SEO) is when a public company issues new shares to the general public in the primary market. This choice accurately describes an SEO.

Note: The other choices do not accurately describe an SEO. A is describing a founder's sale, B is describing the sale of unsold shares from a previous IPO, and D is describing a secondary market transaction between existing shareholders.

What Is an Example of a Seasoned Equity Offering