To finance expansion into Japan, General Motors sells 1,000,000 shares of common stock to investors at large. This is an example of a(n) :

A) Private placement.
B) Seasoned new issue.
C) Rights offer.
D) Regulation A offering.
E) Initial public offering.

Question

Alexis Félix · Accepted Answer

Final Answer : B, Explanation :  This is an example of a seasoned new issue, where a company that is already publicly traded issues additional shares to raise more capital. Since General Motors is already a publicly traded company, this is not an initial public offering (IPO), but rather an issuance of new stock to the public.

To finance expansion into Japan, General Motors sells 1,000,000 shares of common stock to investors at large. This is an example of a(n) :

A) Private placement.
B) Seasoned new issue.
C) Rights offer.
D) Regulation A offering.
E) Initial public offering.

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Learning Objectives

Related questions

To finance expansion into Japan, General Motors sells 1,000,000 shares of common stock to investors at large. This is an example of a(n) :A) Private placement.B) Seasoned new issue.C) Rights offer.D) Regulation A offering.E) Initial public offering.

Definitions

Learning Objectives

Learning Objectives

Related questions

To finance expansion into Japan, General Motors sells 1,000,000 shares of common stock to investors at large. This is an example of a(n) :

A) Private placement.
B) Seasoned new issue.
C) Rights offer.
D) Regulation A offering.
E) Initial public offering.