exercise_6 (1)

exercise_6 (1) - MA826 FINANCE AND FINANCIAL REPORTING...

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MA826 FINANCE AND FINANCIAL REPORTING EXERCISE 6 1. Explain what each of the following terms or phrases mean: (a) venture capital (b) primary market (c) secondary market (d) prospectus (e) “winner’s curse” (f) AIM 2. For each of the following pairs of issues, which is likely to involve the lower proportionate advertising and administrative costs? (a) a large issue/ a small issue (b) an offer for sale/ a rights issue (c) an offer for sale/ a placing 3. Each of the following terms is associated with one of the following events. Can you match them up? (a) placing (b) offer for sale (c) subscription (d) tender (A) An advertisement is published in the financial press listing members of the underwriters syndicate. (B) Investors indicate to the underwriters how many shares they would like to buy in a new issue and these indications are used to help set the price. (C) Issuing house approaches investors and offers issue which is not offered to the public. (D) Issuer sells directly to the public. 4. Associated breweries is planning to market unleaded beer. To finance the
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This note was uploaded on 06/07/2011 for the course MA 826 taught by Professor Loba,millet during the Spring '11 term at Kent Uni..

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exercise_6 (1) - MA826 FINANCE AND FINANCIAL REPORTING...

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