Finance Management

Private equity means investing in companies that are not on the stock market. What kind of companies does private equity focus on?

• Government-owned companies

• Large global companies

• Small businesses not on the stock market

• Nonprofit organizations

What's good about private equity for investors?

• It guarantees quick profits

• You can be a silent owner

• You can actively help run the company

• It requires no involvement from investors

What is a problem with private equity investments?

• You can sell your investment easily

• It's hard to access your money quickly

• The risk is low

• You always have control over the company

What is the main job of capital markets?

• Sell goods and services

• Exchange financial securities

• Buy and sell real estate

• Provide loans to individuals

Why can it be risky for businesses to use capital markets for money?

• It guarantees positive returns

• It discourages competition

• It has low risk

• Returns are uncertain and might not be good

What does "going public" mean for a company?

• Becoming less accountable to shareholders

• Keeping financial information private

• Selling shares to new investors

• Reducing transparency in reports

What's good for a business when it does an Initial Public Offering (IPO)?

• It limits the number of investors

• It attracts new investors and raises a lot of money

• It avoids public attention

• It lowers market share

What do companies do with the money they get from an IPO?

• Buy luxury items for executives

• Pay dividends to existing shareholders

• Use it for research and development or pay off debts

• Reduce their market presence

Why might a company want to do an IPO in terms of publicity?

• To decrease brand awareness

• To limit market share

• To introduce products to more people

• To avoid customer attention

How can an IPO help a company get a bigger share of the market?

• By attracting new customers

• By reducing the number of available shares

• By limiting product availability

• By losing investor interest