A New Issuance of Stocks Is Called A(n)

question 155

Multiple Choice

A new issuance of stocks is called a(n) .

• A)pre-emptive sale.
• B)initial public offering.
• C)preferred sale.
• D)proxy.

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Definitions:

Transit Float

The time difference between when a payment is made and when it is available in the recipient's account.

Processing Float

The time delay between when a check is written and when it is actually deducted from the payer's account, often utilized in managing company cash flows.

Cash Balances

Cash balances refer to the amount of currency, coins, and balances in checking and savings accounts that a company holds at any given time.

Pledging Agreement

A contract in which a borrower pledges an asset as collateral for a loan, ensuring the lender can seize the asset if the loan is not repaid.