Canadian Securities Course (CSC) Practice Exam

What is negotiated in a negotiated offering in finance?

1. The degree of ownership a company has in another

2. The maximum number of shares a corporation may issue

3. The method for distributing new government bonds

4. Details such as security type, price, interest, and valuation

The correct answer is: Details such as security type, price, interest, and valuation

A The degree of ownership a company has in another is not negotiated in a negotiated offering in finance. Ownership is usually determined based on the amount of shares a company has and not through a negotiated offering. B: The maximum number of shares a corporation may issue is not negotiated in a negotiated offering in finance. This is typically determined by a company's Articles of Incorporation and not through a negotiation. C: The method for distributing new government bonds is not negotiated in a negotiated offering in finance. This is typically determined by the government issuing the bonds and not through a negotiation. Overall, the correct answer is D because a negotiated offering in finance refers to the process of determining specific details such as security type, price, interest, and valuation for a new financial offering. This involves negotiation between the company and potential investors to come to an agreement on these terms. Options A, B, and C are all related to different aspects of finance, but they are not specifically related to a negotiated offering.