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Managerialfinance 5 corporate equity security

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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 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...
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