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WorksheetsSec & Inv Ch 10: Stock Offerings & Inv Monitoring Review
Total questions: 10
Worksheet time: 6mins
Some business owners hope to go public so that they can:
have fewer regulations and reporting requirements than they've had to deal with before
not have to worry about shareholder value moving forward
get financing to support growth &/or “cash out” by selling their original equity investment to others
work less and spend more time with their friends and family
learn to enjoy themselves more and experience life as a journey, not a destination
_______funds pool money provided by institutional investors and invest in businesses.
Venture Capital
Personal Wealth
Public Equity
Bond
Private Equity
Companies who use Crowdfunding try to raise funds from large numbers of investors
by holding one on one meeting
by holding large conferences
using direct mail
over the internet
through text messages
When a firm goes public, it issues stock in the __________________ market in exchange for cash.
secondary
superficial
OTC
primary
futures
Equity interest in a firm that usually does not allow for significant voting rights is called…
common stock
suppressed stock
foreign stock
pink sheet stock
preferred stock
In general, favorable news about a firm’s performance will make investors believe that the firm’s stock is ___________________ at its prevailing price.
valued
over valued
under valued
not valued
secretly valued
The _______ period prevents the original owners of the firm and the venture capital firms from selling their shares for a specified period.
lockdown
flipping
lock-tight
lockup
hedging
_______ tend to occur more frequently during bull stock markets.
Falling stock prices
Money market investments
Initial Public Offerings
Interest rate drops
Secondary market downturns
Listing requirements require a minimum number/level of
shares outstanding, earnings, cash flow & revenue
specialists & floor traders
venture capital and private equity funds
expenses and investments
payoffs and lockout periods
If shareholders are displeased with the way managers are managing a firm, what are their options?
just do nothing and keep their shares
only sell the Stock
engage in shareholder activism exclusively
retain their shares, sell them, or engage in shareholder activism
take to the streets and protest
