Question

When a publicly traded company is issuing equity the procedure is called: (a) APO (b) IPO...

When a publicly traded company is issuing equity the procedure is called:

(a) APO

(b) IPO

(c) SEO

(d) CEO

and why?

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Answer #1

Answer: Correct option is SEO.
It refers to secondary equity offering, it is also known as seasoned equity offering or follow-on offering. Secondary equity offering refers to equity offering by a company whose stocks are already trading in the secondary market. As it comes when the shares of a company are already trading in secondary markets, we call it as secondary equity offering or follow-on offering or seasoned equity offering. When a company goes public for the first time, it is called as initial public offering or IPO.

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