Question

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.

Answer 1

Correct option is (b)

Step-by-step 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.