A Public Issue of Securities Which Are First Offered to Existing

question 15

Multiple Choice

A public issue of securities which are first offered to existing shareholders is best defined as a(n) :

• A)IPO
• B)rights offer
• C)private placement
• D)general cash offer
• E)general offer

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Definitions:

Profit Margin

A profitability ratio calculated by dividing net income by revenue, expressing the percentage of revenue that translates into net income.

Collection Policy

The procedures and guidelines used by a company to manage and collect accounts receivable.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Salaries Payable

An account representing the amounts owed to employees for work performed but not yet paid.