Series 79 practice questionmediumFollow-On Offerings
An S-3 eligible issuer has an effective shelf registration statement. Which of the following best describes an 'at-the-market' (ATM) offering?
- AA fixed-price follow-on with shares sold all at once
- BA best efforts deal limited to institutional investors
- CA program allowing the issuer to sell shares intermittently at prevailing market prices✓ Correct answer
- DA fully underwritten offering with no price flexibility
Explanation
Why C — A program allowing the issuer to sell shares intermittently at prevailing market prices
ATM offerings allow issuers to sell shares into the market over time at current prices, offering flexibility and minimizing market impact. Fixed-price and fully underwritten offerings differ as they execute at a set price and/or time. Best efforts deals don't necessarily involve market pricing or continual sales.
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