Question

Main supplies is a publicly traded firm with 250,000 shares of stock outstanding. if the firm issues an additional 10,000 shares, those shares will be referred to as a(n):_____.

Answer 1

A publicly traded company with 250,000 outstanding shares of stock is called Main Supplies. If the company offers 10,000 more shares, they will be referred to as Seasoned Equity Offering.

Any share issue that occurs after a company's Initial Public Offering (IPO) on the stock market is referred to as a Seasoned Equity Offering also known as a Follow On Offering. Therefore, the corporation issuing the securities is already publicly traded and is returning to the market to raise further funds. A Secondary Offering is the sale of shares by existing shareholders, whereas a Seasoned Equity Offering is the issue of shares to the public following an IPO.

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