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16 June, 23:17

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.

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  1. 16 June, 23:44
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    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.
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