CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

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
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.
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