FUND.OF CORP.FINANCE PKG. F/BU >C<
FUND.OF CORP.FINANCE PKG. F/BU >C<
16th Edition
ISBN: 9781323165997
Author: Berk
Publisher: PEARSON C
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Chapter 14, Problem 11CT
Summary Introduction

Seasoned equity offering:

A seasoned equity offering often termed as a secondary equity offering refers to a new equity provided by a publicly traded firm. A seasoning equity offering involves shares that are sold by existing shareholders of the firm, new shares, or in some cases both. Cash offer and rights offer are two types of seasoning equity offering.

To determine:

The reason why the stock price decreases when a firm makes an announcement about an SEO.

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