A Public Offering of Securities Where Existing Shareholders of the fiRm

question 136

Multiple Choice

A public offering of securities where existing shareholders of the firm have the first opportunity to buy the new securities, exclusive from the general public, is called a:

• A) Best efforts offer.
• B) Firm commitment offer.
• C) General cash offer.
• D) Rights offer.
• E) Red herring offer.

---

Definitions:

Third Party

An entity that is involved in a transaction but is not one of the principal parties, often providing an intermediary service or additional perspective.

Settlement

An agreement reached by parties in a dispute, often legally binding, to resolve issues without further litigation.

Constructive Dismissal

A situation where an employee resigns due to the employer creating a hostile or unbearable work environment, effectively forcing the employee out.

Working Conditions

The environment and circumstances under which employees operate, including hours, physical aspects, legal rights, and safety.