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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
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
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- Spring '12