Which of the following terms is associated with secondary (as opposed to primary) equity markets? A. shelf registration B. seasoned equity offering C. bid-ask spread D. initial public offering E. underwriter's spread
Option A:Shelf Registration is a prospectus of future multiple new offerings in the primary market. INCORRECT OPTION
Option B:Seasoned equity offering is issue of new additional shares by corporation in primary market. INCORRECT OPTION
Option C:Bid-ask spread is related to trading which takes place in the secondary market. Bid is the highest price a buyer is willing to pay and ask is the lowest price a seller is willing to accept. The difference is the spread. CORRECT OPTION
Option D:Initial Public Offering is related to Primary Market as it is a fresh issue of shares to public. INCORRECT OPTION
Option E: Underwriter's spread is a term associated with the Investment banks' return after the IPO process which is related to primary equity market. INCORRECT OPTION
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