Final answer:
A 'Dual' offering is where proceeds are paid to both the issuer and selling shareholders. No specific rate of return is promised when a company sells stock. The board of directors makes key decisions for a public company.
Step-by-step explanation:
In the context of public offerings, the type of offering where proceeds are paid to both the issuer and selling shareholders is known as a Dual offering. In a Dual offering, part of the proceeds go to the company itself for various uses like expansion and operations, while the remaining proceeds go to existing shareholders, including early-stage investors such as venture capital firms that may be selling their ownership stake in the company.
When a company sells stock, it doesn't promise a specific rate of return; instead, shareholders gain the potential for capital gains and dividends. The actual return on investment depends on various factors including the performance of the company and market conditions.
Decision-making in a public company owned by a large number of shareholders is generally handled by a board of directors. Shareholders vote to elect the board, which then makes important decisions on their behalf, such as when to issue stock, pay dividends, or reinvest profits.