Which of the following occurs when a company issues new stock to a small number of,typically,institutional investors?
A)A dividend reinvestment plan
B)A share buy- back
C)A private placement
D)A rights issue

Question

Quizplus · Accepted Answer

When a company issues new stock to a small group of investors, usually institutional investors, it is known as a private placement. This is different from a rights issue, which is when a company offers additional shares to its existing shareholders in proportion to their current holdings. A dividend reinvestment plan allows shareholders to reinvest their dividends back into the company by purchasing additional shares, while a share buyback is when a company buys back its own shares from the market.

Which of the Following Occurs When a Company Issues New