When a corporation announces that it is seeking additional equity capital through a sale of additional authorized but unissued shares,

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TheoryPractice · Accepted Answer

this is a primary distribution. The ‘trick’ with this question is that anytime a company is selling NEW previously unissued shares from their Authorized shares maximum, those shares are NEW ---- Primary distribution means the shares being sold are NEW, never before issued, not previously owned by anyone.

When a corporation announces that it is seeking additional equity capital through a sale of additional authorized but unissued shares,

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