Bubba Corporation has a registered public offering of 500,000 shares at $36. Of these, 300,000 shares were authorized by unissued and 200,000 shares were sold on behalf of an affiliated person.
What is evident from this information?
- the entire proceeds of the offering are a primary offering accruing to the corporation
- 300,000 shares are identified as a primary distribution
- 60% of the proceeds are paid to the corporation and the balance accrues to the affiliated person
- both B and C
Answer(s): D
Explanation:
both B and C. The 200,000 shares are sold on behalf of the affiliated person so the proceeds go to that individual. Only the other 300,000 shares are a primary offering.
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