CH16TBV7 - CHAPTER 16 Raising Capital I DEFINITIONS VENTURE...

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CHAPTER 16 Raising Capital I. DEFINITIONS VENTURE CAPITAL a 1. The financing provided for start-up, often high-risk, private business enterprises is called: a. venture capital. b. junk bonds. c. flotation costs. d. initial public offerings. e. financial futures. REGISTRATION STATEMENT b 2. The document(s) filed with the SEC disclosing all material information relating to the firm making an offering of public securities is called the: REGULATION A c 3. The SEC regulation that exempts public issues of less than $5 million from most registration requirements is called: PRELIMINARY PROSPECTUS d 4. The preliminary prospectus distributed to investors during the SEC waiting period is often called a(n):
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CHAPTER 16 LETTER OF COMMENT e 5. The _____ is transmitted to the prospective issuing firm by the SEC when they have suggestions for changes to the registration statement and/or its supporting documents. a. indenture contract b. Green Shoe statement c. Regulation A statement d. preliminary prospectus e. letter of comment PROSPECTUS a 6. The legal document describing details of the issuing corporation and its security offering to potential investors is called the: TOMBSTONE b 7. Advertisements in, for example, The Wall Street Journal announcing a corporation’s public offering of securities, along with a list of the investment banks handling the offering, are called: GENERAL CASH OFFER c 8. An issue of securities offered for sale to the general public on a direct cash basis is called a _____ offering. RIGHTS OFFER d 9. A public offering of securities where existing shareholders of the firm have the first opportunity to buy the new securities is called a _____ offering. a. best efforts b. firm commitment c. general cash d. rights e. red herring
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CHAPTER 16 INITIAL PUBLIC OFFERING e
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