Question

7.

Marco Painting Supplies is a publicly-traded firm with 250,000 shares of stock outstanding. If the firm issues an additional 10,000 shares, those shares will be referred to as a(n):

A.

supplemental offering.

B.

seasoned equity offering.

C.

initial public offer.

D.

market expansion offer.

E.

after-market underwriting.

Answer 1

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Answer:

A seasoned equity offering is when additional shares or bonds are issued to the public by an existing publicly traded company. It's usually made by an established prganization whose shares are already being traded on the secondary market.

Other options are incorrect as the terms supplemental offering after-market underwriting though alternative means secondary offering does not term as additional issue offerings

Hence option B