Seasoned equity offerings (SEOs)
from class: Principles of Finance Definition Seasoned equity offerings (SEOs) are the issuance of additional shares by a company that is already publicly traded. They are used to raise extra capital for various business needs.
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Predict what's on your test 5 Must Know Facts For Your Next Test SEOs can dilute existing shareholders' ownership percentages. Companies often use SEOs to finance new projects, reduce debt, or expand operations. The announcement of an SEO can sometimes lead to a decrease in the company's stock price due to perceived dilution. Investment banks typically assist companies in managing the SEO process. Regulatory filings and disclosures are required before executing an SEO. Review Questions What is a seasoned equity offering and why might a company use one? How can SEOs impact existing shareholders? What role do investment banks play in SEOs?
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