Series 79 practice questioneasyFollow-On Offerings
In a secondary block trade, who typically sells the shares in the offering?
- AThe issuer
- BThe underwriter
- CThe SEC
- DA large existing shareholder✓ Correct answer
Explanation
Why D — A large existing shareholder
A secondary block trade involves a large existing shareholder selling their shares, not the issuer or underwriter. The SEC does not sell shares in offerings.
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