Definition of Split Offering

A split offering is a  registered offering, of securities  where a portion of the proceeds from the underwriting go to the issuer and a portion go to selling shareholders. A split offering is also known as a combined offering.

Applying "Split Offering" to Securities Exams:

Often times when the issuer of securities is going public a portion of the securities being sold under the offering will be from selling officers, directors and venture capital funds. Officers, directors and founders in most cases invested as significant amount of time and effort building the company and a public offering of securities is usually their first opportunity to “take some money off the table” The same can be said for venture capital funds that have invested in the company to help it grow to where it could be taken public. A split or combined offer could also be a type of subsequent issue, with a portion of the proceeds going to the company and a portion going to selling shareholders. Be sure you are ready to pass your exam with our greenlight pass guarantee.

 

Good Luck on your exam!

The Securities Institute of America, Inc.

 

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