Seasoned equity offering could be defined as a new issue of common stock offered to the general public by a firm that is currently publicly held.
What is Seasoned equity offering?
- An existing publicly traded firm may issue fresh shares through a "seasoned equity offering," "secondary equity offering," or "capital raise."
- Seasoned offers might include new shares (dilutive), shares sold by current shareholders (non-dilutive), or a combination of the two. It can be a shelf offering if the seasoned stock offering is made by an issuer that complies with certain regulatory requirements.
- In a public offering known as an initial public offering (IPO) or stock launch, shares of a firm are sold to institutional investors as well as, often, to retail (individual) investors.
- The shares are normally listed on one or more stock exchanges and are typically underwritten by one or more investment banks.
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Question:
Which one of the following terms could be defined as a new issue of common stock offered to the general public by a firm that is currently publicly held?
Initial public offering
Private placement
Rights offer
Venture capital
Seasoned equity offering