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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? |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
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.