When a Company Offers the Investing Public a Certain Number

question 115

Multiple Choice

When a company offers the investing public a certain number of shares of its stock at a certain price, the company is making what is known as a

• A) public offering.
• B) rights offering.
• C) stock spin-off.
• D) treasury offering.

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Definitions:

Drive-Reduction

A theory in psychology that explains motivation as being based on the goal of reducing needs created by physiological drives or states.

Homeostatic

Pertaining to homeostasis, the regulation of internal conditions within an organism to maintain stable, constant conditions for survival.

Bodily Needs

Basic physiological requirements for human survival, such as food, water, shelter, and sleep.

Reciprocity

The practice of exchanging things with others for mutual benefit, especially in social and emotional contexts.