Capital MarketsQuestion 359 of 398
In an offering that is entirely secondary, all of the proceeds go to:
a.The selling shareholders, not the issuing company
b.The issuing company only
c.The underwriting syndicate
d.The SEC
Explanation
In a purely secondary offering, the shares being sold are already outstanding and owned by existing holders, so the proceeds go to those selling shareholders rather than the company. The issuer does not raise new capital in a secondary distribution.
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