1. A secondary common stock offering is:

1. sale of additional equity by a publicly traded firm.
2. Initial public offering made in foreign markets.
3. Issue of stock options to employees.
4. Offer by the issuing firm to buy back its stock in the secondary market.

2. Which one of the following statements is false regarding a private placement?

1. Private placement securities are not available for sale to all investors.
2. Private placement securities cannot be resold by the investors.
3. Private placement securities are often sold to financial institutions.
4. Private placement securities are not traded in NYSE