Series 79 practice questionmediumFollow-On Offerings
A company with an effective shelf registration wants to sell shares on a continuous, delayed basis at prevailing market prices. Which follow-on program would allow this?
- AFixed price shelf takedown
- BBought deal offering
- CFully marketed follow-on
- DAt-the-market (ATM) offering✓ Correct answer
Explanation
Why D — At-the-market (ATM) offering
An ATM offering allows issuers to sell shares from an existing shelf at market prices over time. This differs from fixed price or bought deals, which use set pricing and timing.
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