- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 6. Primary Security Markets
CFA Practice Question
If an issuer wants to sell additional units of a previously issued security, it makes a(n) ______.
B. seasoned offering
C. rights issue
A. IPO
B. seasoned offering
C. rights issue
Correct Answer: B
A seasoned offering is a new equity issue by an already publicly traded company. It is also called a secondary offering.
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. |