Chapter 15

Chapter 15 - Chapter 15 - Raising Capital Chapter 15...

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Unformatted text preview: Chapter 15 - Raising Capital Chapter 15 Raising Capital Multiple Choice Questions 1. Jones & Co. is funded by a group of individual investors for the sole purpose of providing funding for individuals who are trying to convert their new ideas into viable products. What is this type of funding called? A. green shoe funding B. tombstone underwriting C. venture capital D. red herring funding E. life cycle capital 2. What is the form called that is filed with the SEC and discloses the material information on a securities issuer when that issuer offers new securities to the general public? A. prospectus B. red herring C. indenture D. public disclosure statement E. registration statement 3. Miller & Chase is offering $4 million of new securities to the general public. Which SEC regulation governs this offering? A. Regulation A B. Regulation C C. Regulation G D. Regulation Q E. Regulation R 15-1 Chapter 15 - Raising Capital 4. What is a prospectus? A. a letter issued by the SEC authorizing a new issue of securities B. a report stating that the SEC recommends a new security to investors C. a letter issued by the SEC that outlines the changes required for a registration statement to be approved D. a document that describes the details of a proposed security offering along with relevant information about the issuer E. an advertisement in a financial newspaper that describes a security offering 5. Which one of the following is a preliminary prospectus? A. tombstone B. green shoe C. registration statement D. rights offer E. red herring 6. Advertisements in a financial newspaper announcing a public offering of securities, along with a list of the investment banks handling the offering, are called: A. red herrings. B. tombstones. C. Green Shoes. D. registration statements. E. cash offers. 7. What is an issue of securities that is offered for sale to the general public on a direct cash basis called? A. best efforts underwriting B. firm commitment underwriting C. general cash offer D. rights offer E. herring offer 15-2 Chapter 15 - Raising Capital 8. Tony currently owns 12,000 shares of GL Tools. He has just been notified that the firm is issuing additional shares of stock and that he is being given a chance to purchase some of these shares prior to the shares being offered to the general public. What is this type of an offer called? A. best efforts offer B. firm commitment offer C. general cash offer D. rights offer E. priority offer 9. Soup Galore is a partnership that was formed three years ago for the purpose of creating, producing, and distributing healthy soups in a dried form. The firm has been extremely successful thus far and has decided to incorporate and offer shares of stock to the general public. What is this type of an equity offering called?...
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Chapter 15 - Chapter 15 - Raising Capital Chapter 15...

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