Seasoned equity offerings (SEOs):

Seasoned equity offerings (SEOs) refer to the process by which public companies issue additional shares after their initial public offering (IPO). One of the key characteristics of SEOs is that they can dilute the ownership stake of existing shareholders. Specifically, when a company issues new shares, the total number of outstanding shares increases, thus reducing the percentage of the company that existing shareholders own. This dilution effect occurs because, while the company is raising additional capital, the ownership percentage of current shareholders decreases unless they purchase additional shares in proportion to their existing holdings.

By diluting ownership, shareholders may see a reduction in their voting power and their claim on future earnings, such as dividends. Therefore, option B accurately captures a significant aspect of SEOs, making it the correct choice. The other options do not reflect the full implications of SEOs as they either misstate the characteristics or outcomes associated with such offerings.