IPO Markets and Business Funding

What is the purpose of understanding the origin of a business?

• To learn about the funding environment

• To understand why companies go public

• To build a foundation for future topics

• To explore new financial concepts

What is the term used for investors who provide funding at the pre-revenue stage?

• Venture Capitalists

• Private Equity investors

• Angel investors

• Bankers

What is the initial capital raised by the entrepreneur and angel investors called?

• Seed Fund

• Series A funding

• Capital Expenditure

• Internal Accruals

What is the valuation of a company based on?

• Assets and liabilities

• Revenue and profits

• Number of shares issued

• Face value of shares

What is the face value of a share?

• The original worth of a share

• The number of shares issued

• The value of a share after IPO

• The value of a share after a stock split

What is the difference between authorized shares and issued shares?

• Authorized shares are owned by the company, while issued shares are owned by shareholders

• Authorized shares are available for future issuance, while issued shares are already allocated to shareholders

• Authorized shares are valued higher than issued shares

• Authorized shares are traded on the stock market, while issued shares are not

What is the funding stage called when a company seeks investment from Venture Capitalists?

• Series A funding

• Series B funding

• Series C funding

• Series D funding

What type of investors prefer to invest in companies with a revenue stream and a few years of operation?

• Angel investors

• Venture Capitalists

• Private Equity investors

• Bankers

What is the purpose of capital expenditure (capex)?

• To fund business expansion

• To repay debt

• To reward shareholders

• To invest in internal accruals

What type of investors typically invest in capex requirements of a company?

• Angel investors

• Venture Capitalists

• Private Equity investors

• Bankers