Capital MarketsQuestion 315 of 398
An offering in which some shares are newly issued by the company and other shares are sold by existing large shareholders is called a(n):
a.Combined (split) offering
b.Rights offering
c.Best-efforts all-or-none offering
d.Exempt offering
Explanation
A combined or split offering includes both a primary component (new shares from the issuer that raise capital for the company) and a secondary component (existing shares sold by insiders or large holders whose proceeds go to those sellers). The company only receives proceeds from the primary portion.
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