What is an issue of securities that is offered for sale to the general public on a direct cash basis called?
A)best efforts underwriting
B)firm commitment underwriting
C)general cash offer
D)rights offer
E)herring offer

Question

Quizplus · Accepted Answer

A securities issue that is offered for sale to the general public on a direct cash basis is called a general cash offer. A best efforts underwriting involves the underwriter agreeing to use their best efforts to sell the securities but does not guarantee the sale. A firm commitment underwriting involves the underwriter guaranteeing the sale of the securities. A rights offer allows current shareholders to purchase additional shares at a discounted price. A herring offer is a type of preemptive rights offer in the United Kingdom.

What Is an Issue of Securities That Is Offered for Sale