- CFA Exams
- CFA Exam: Level I 2021
- Study Session 12. Equity Investments (1)
- Reading 36. Market Organization and Structure
- Subject 6. Primary Security Markets
CFA Practice Question
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
Correct Answer: C
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? |