IBM stock has been traded on stock market for many years. A sale by IBM of new stock to the public in year 2015 would be a (n)

a. short sale.

b. seasoned equity offering.

c. private placement.

d. secondary market transaction.

e. initial public offering.

Question

Business

Aliza Ball

17 October, 08:16

IBM stock has been traded on stock market for many years. A sale by IBM of new stock to the public in year 2015 would be a (n)

a. short sale.

b. seasoned equity offering.

c. private placement.

d. secondary market transaction.

e. initial public offering.

+2

Answers (1)

Know the Answer?

Moshe Barajas · Answer 1

Correct option is (b)

Explanation:

Seasoned equity offering is done by companies who have been trading equities publicly for a long time. At times they offer already issued or new shares in the market.

Here, IBM has been trading its stock for a long time. So, if it issues new shares to public, it is considered as SEO or seasoned equity offering.

IBM stock has been traded on stock market for many years. A sale by IBM of new stock to the public in year 2015 would be a (n)a. short sale.b. seasoned equity offering.c. private placement.d. secondary market transaction.e. initial public offering.

IBM stock has been traded on stock market for many years. A sale by IBM of new stock to the public in year 2015 would be a (n)

a. short sale.

b. seasoned equity offering.

c. private placement.

d. secondary market transaction.

e. initial public offering.