SIE Exam Practice Question 265
Question: 265
When a corporation announces that it is seeking additional equity capital through a sale of additional authorized but unissued shares,
Correct Answer: B
Explanation:
B: The 'trick' with this question is that anytime a company is selling NEW previously unissued shares from their Authorized shares maximum, those shares are NEW ---- Primary distribution means the shares being sold are NEW, never before issued, not previously owned by anyone.
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