Chap 5: LT

1. 1. Stock markets in which already issued stocks are resold and re-bought are classified as

• Red herring stock market

• Preemptive stock market

• Silence stock market

• Secondary stock markets

2. 2. Right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stockholders is classified as

• Non-offered rights

• Preemptive rights

• Existing rights

• Securitize rights

3. 3. Which of the following statements is incorrect concerning private placements?

• Terms of the financing can be custom-tailored

• The securities are not made available to the public

• The securities are often less marketable

• Only a small amount of corporate debt is financed in this manner

4. 4. is a method that the middleman commits with issuing company to complete issuing preparation procedures, to buy a certain amount of issuing security or to buy all unsubscribed issuing shares

• Initial Public Offering

• Direct Public Offering (DPO)

• Second Public Offering

• Issue Underwriting

55. 5. Which type of underwriter agrees to purchase the portion of the new securities issue that remains after a public offering?

• Firm Commitments

• Best efforts

• Stand-by underwriting

• All or none

6. 6. In Vietnam, requirement conditions of public offering are

• Charter capital is at least 30 billion VND

• Charter capital is at least 25 billion VND

• Charter capital is at least 80 billion VND

• All of the above

7. A market where new securities are bought and sold for the first time is known as a ... market

• Primary

• Secondary

• Tertiary

• Capital

Câu 8: The cases in which a company chooses the private offering rather than public offering are:

1. The company couldn’t meet requirements of public offering

2. The number of securities issued is too large

3. It allows company to choose investors, that help company strengthen their business relationship

4. Investor with similar objective can provide business advice and assistance, as well as funding

• A. 1

• B. 1,2,3

• C. 1,3,4

• D. 1,2,3,4

9. Which sentence is true for direct public offering?

• Save issuing cost

• Save time of the offering

• The success of the offering is always guaranteed

• It can’t eliminate the middlemen

10. Which sentence is not true when refers to characteristics of primary securities market?

• The market operates infrequently

• The issuers receive the money in return of selling new securities to the investors

• Primary market performs the crucial function of facilitating long-term capital formation in the economy

• The volume and transaction speed of the primary market are higher than those of secondary market