5.3 2046196092

Managerialfinance 5 corporate equity security

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: rial Finance 5 Corporate Equity Security Offerings 17.7% Private Rule 144A placements 16.2% Private non-Rule 144A placements 66.1% Public equity offering Source: Jennifer E. Bethal and Erik R. Sirri, “Express Lane or Toll Booth in the Desert: The Sec of Framework for Securities Issuance,” Journal of Applied Corporate Finance (Spring 1998). Managerial Finance 6 Stages of Financing 1.Seed-Money Stage: Small amount of money to prove a concept or develop a product. 1.Start-Up Funds are likely to pay for marketing and product refinement. 1.First-Round Financing Additional money to begin sales and manufacturing. 1.Second-Round Financing Funds earmarked for working capital for a firm that is currently selling its product but still losing money. 1.Third-Round Financing Financing for a firm that is at least breaking even and contemplating expansion; a.k.a. mezzanine financing. 1.Fourth-Round Financing Financing for a firm that is likely to go public within 6 months; a.k.a. bridge financing. Managerial Fi...
View Full Document

This note was uploaded on 08/27/2012 for the course ECON 101 taught by Professor Chai during the Spring '12 term at Uni. Ulster.

Ask a homework question - tutors are online