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Basic Question 5 of 6

If an issuer wants to sell additional units of a previously issued security, it makes a(n) ______.

A. IPO
B. seasoned offering
C. rights issue
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User Contributed Comments 2

User Comment
johntan1979 Isn't C also correct, since in a rights offering, you also sell additional units of previously issued security?
leon121 don't think so @johntan1979. a rights offering is a right. while question addresses something more general.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

define primary and secondary markets and explain how secondary markets support primary markets

CFA® 2025 Level I Curriculum, Volume 3, Module 1.