94.2k views
1 vote
An offering can be a combination of a primary and secondary offering and are known as what

User Guiseppe
by
8.1k points

1 Answer

4 votes

Final answer:

A combined offering, also known as a split offering, includes both a primary offering where new shares are issued by the company, and a secondary offering where existing shareholders sell their shares.

Step-by-step explanation:

An offering that combines both a primary offering and a secondary offering is known as a combined offering or a split offering. In a primary offering, new shares are created, issued, and sold by the company, allowing it to raise new capital.

However, in a secondary offering, existing shareholders sell their shares to other investors, and the proceeds go to those shareholders rather than to the company.

A combined or split offering therefore includes both the issuance of new equity by the company (primary) and the sale of existing shares by current shareholders (secondary). It provides a way for companies to raise capital while allowing existing shareholders to liquidate their holdings.

User Rajiv Prathap
by
8.3k points

No related questions found