Q919
A company sells its stock shares for raising more equity capital is classified as
A.
dealer communication offering
B.
seasoned equity offering
AnswerC.
electronic equity offering
D.
electronic order offering
Answer: Option B
Solution
Answer: Option B
Solution:
A company sells its stock shares for raising more equity capital is classified as seasoned equity offering. A seasoned issue is an issue of additional securities from an established company whose securities already trade in the secondary market. A seasoned issue is also known as a "seasoned equity offering" or "follow-on offering." New shares issued by blue-chip companies are considered seasoned issues.