4.1.2. Types of Securities Offerings
When a company issues and sells new shares to the public, it is called a primary offering. The proceeds of a primary offering go to the issuer of the securities. When new shares are sold for the first time to the public, the offering takes place in what is called the primary market. If the company has never issued shares before, the first offering of shares is referred to as an initial public offering (IPO). Once the shares have been registered with the SEC and purchased in the public offer