Question

1. The process of a publicly traded company raising additional capital by selling new shares to the public best describes a:

1. stock dividend.
2. share repurchase.
3. c.seasoned equity offering

Answer 1

The process of a publicly-traded company raising additional capital by selling new shares to the public best describes :c. seasoned equity offering

Because dividend is normal amount of cash paid to existing shareholder out of its profits. And Share repurchase is like company purchasing its own shares from existing shareholders to decrease holdings of existing shareholders to reduce their control over comapny.

Whereas seasoned equity financing is normal offering of more equity shares in the market to raise capital.