Chapter 15 Cue Cards

Question	Answer
What is venture Capital?	Money invested to finance a new firm
Who is an Underwriter?	Firm that buys an issue of securities from a company and resells it into public
What is Spread (Referring to IPOs)	Difference between public offer and underwriter paid price
What is a Prospectus?	Formal summary that provides information on an issue of securities (Key function: warn investors about risks)
How is the IPO Price determined?	Discounted cash flow calculations an an analysis of the price-earnings ratio of shares of firms competitors
Underwriters typically try to UNDERprice the IPO T/F	True
What is an underwriting firm commitment?	When underwriters buy new shares from issuer and then resell to public at higher price, making a spread.
What is a seasoned offering?	Sale of securities by a firm that is already publicly traded
What are rights issues?	Issue of securities offered only to current shareholders
What is the Standby Underwriting agreement?	Underwriter stands ready to purchase any unsold shares
What is shelf registration?	Procedure that allows firms to file one registration for several issues of same security
What is a General Cash Offer?	Sale of securities open to all investors by an already public company

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	Created by dylan_earl about 9 years ago