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Basic Question 6 of 6
Mr. A has 100 shares of company X; he purchased the shares at $400 per share and the stock price has not changed since the purchase date. A broker just notified him that he has the option to subscribe for an additional 100 shares of common stock of the company at $350 per share. This offer is an example of a ______.
B. shelf registration
C. rights offering
A. seasoned offering
B. shelf registration
C. rights offering
User Contributed Comments 4
| User | Comment |
|---|---|
| farhan92 | $400 a share?! |
| FozzeyBear | does that seem like a lot to you? probably because all of your stocks go to ZERO |
| jam2del | let's be nice here |
| walterli | you never heard of Bitcoin? |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
define primary and secondary markets and explain how secondary markets support primary markets
CFA® 2024 Level I Curriculum, Volume 3, Module 1.