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Before a Seasoned Stock Offering,you Owned 7,500 Shares of a Firm

Question 3

Multiple Choice

Before a seasoned stock offering,you owned 7,500 shares of a firm that had 500,000 shares outstanding.After the seasoned offering,you still owned 7,500 shares but the number of shares outstanding rose to 625,000.Which one of the following terms best describes this situation?


A) overallotment
B) percentage ownership dilution
C) Green Shoe
D) Red herring
E) abnormal event

Correct Answer:

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