What term describes the sale of additional stock by a publicly traded company?

The term that describes the sale of additional stock by a publicly traded company is a Seasoned Equity Offering (SEO). This occurs when a company that is already public issues new shares to raise additional capital, usually after the initial public offering (IPO).

SEOs are utilized by companies for various reasons, such as financing new projects, paying down debt, or for general corporate purposes. Unlike an IPO, which is the first time a company sells shares to the public, a seasoned offering involves existing shareholders having the opportunity to buy new shares, potentially diluting the ownership percentage of current shareholders but raising funds for the company.

This distinction between SEOs and other types of offerings, such as initial public offerings or private placements, is crucial in business finance as it directly pertains to how companies manage their capital structure and growth financing.