Series 79 practice questionmediumFollow-On Offerings
Which type of follow-on offering allows the issuer to sell shares at prevailing market prices over time, rather than at a fixed price in a single transaction?
- ABought deal
- BFully marketed follow-on
- CAt-the-market (ATM) offering✓ Correct answer
- DRights offering
Explanation
Why C — At-the-market (ATM) offering
ATM offerings enable issuers to sell shares into the market at current prices over time. The other types involve fixed pricing or structured buyouts, which do not provide the same flexibility.
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