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

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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? 3. Miller & Chase is offering $4 million of new securities to the general public. Which SEC regulation governs this offering? 15-1
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Chapter 15 - Raising Capital 4. What is a prospectus? 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: 7. What is an issue of securities that is offered for sale to the general public on a direct cash basis called? 15-2
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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?
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