P 454 ge neral cash offer issue of securities offered

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Unformatted text preview: p. 454) Ge neral cash offer - issue of securities offered for sale to the general public on a cash basis. (p. 451) Gr een Sho e prov ision - contract provision giving the underwriter the option to purchase additional shares at the offering price. (p. 455) Ho ld er-of-record date - date on which existing shareholders on com pany records are designated as the recipients of stock rights. (p. 470) | v v 128 | e-Text Main Menu | Textbook Table of Contents | Study Guide Table of Contents Initial pub lic offering (IPO ) - a com pany's first public equity issue. (p. 451) Ov ersubscription privilege - allows shareholder to purchase unsubscribed shares in a rights offering at the subscription price. (p. 471) Private placem ents - loans provided directly by a limited num ber of investors. (p. 477) Prosp ectus - legal docum ent describing details of issuer and offering to potential investors. (p. 451) Red herr in g - preliminary prospectus distributed to prospective investors in a new issue. (p. 451) Reg istra tion statem ent - SEC filing that discloses all material information concerning the firm mak in g a public offering. (p. 450) Reg ulation A - regulation exem ptin g small public issues from mo st registration requirements. (p. 450) Righ ts offer - public issue where securities are first offered to existing shareholders. (p. 451) Seaso ned equ ity offering - equity issue by a firm that has previously sold securities publicly. (p. 453) She lf registration - Rule 415 allowing registration of issues expected to sell within two years. (p. 478) Spr ead - difference between the underwriter's buying price and the offering price. (p. 454) Stand by fee - amo unt paid to underwriter participating in standby underwriting agreemen t. (p. 471) Stand by und erwriting - agreemen t where underwriter agrees to purchase the unsubscribed portion of the issue. (p. 471) Syn dicate - a group of underwriters formed to reduce risk and facilitate sale of issue. (p. 453) Ter m loan - direct business loans amo rtized over one to five years. (p. 477) Tom bstone - an advertisement announ cin g a public offering. (p. 451) Un derwriters - investmen t firms that act as intermediaries between the issuer and the public. (p. 453) Ven ture capital - financing for new, often high-risk ventures. (p. 432) CO NCE PT TE ST 1. _____ _________ ______ is defined as financing for new, high-risk enterprises. Funds are obtained from institutional investors such as pension funds, as well as from individuals. Som e venture capitalists provide _____ _________ ______, which allows the new firm's founders to get a prototype product built. Venture capitalists also provide _____ _________ ______ to begin man ufactu ring and selling the product. Venture capitalists often obtain a substantial _____ _________ ______ in the new firm in return for their services. (p. 448) 2. When a firm sells a new issue of securities, the firm mu st file a _____ _________ ______ statement with the _____ _________ ______ . The SEC studies...
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