Asked by Aleyna Akgun on May 28, 2024
Verified
___________ is a stock or bond issue that is sold to the general public on a first come, first served basis.
A) An initial public offering.
B) A rights offering.
C) A general cash offering.
D) A seasoned issue.
E) A private issue.
General Cash Offering
A public sale of securities in which the proceeds are used to fund general business activities and not earmarked for a specific project.
Rights Offering
An issue of rights to existing shareholders allowing them to buy additional shares directly from the company at a discount before a public offering.
Seasoned Issue
A new offering of stock to the public from a company that has previously issued securities to the public.
- Identify the various types of offerings and underwriting processes used in the finance industry.
Verified Answer
ZK
Zybrea KnightJun 02, 2024
Final Answer :
C
Explanation :
A general cash offering is a type of stock or bond issue that is made available to the general public on a first-come, first-served basis, unlike private issues which are offered to a select group of investors or initial public offerings which are the first sale of stock by a private company to the public.
Learning Objectives
- Identify the various types of offerings and underwriting processes used in the finance industry.