FIN 300 Ch. 15 HW

tombstones.

Advertisements in a financial newspaper announcing a public offering of securities, along with a list of the investment banks handling the offering, are called:

Rights offer

Alberto currently owns 2,500 shares of Southern Tools. He has just been notified that the company is issuing additional shares and he is being given a chance to purchase some of these shares prior to the shares being offered to the general public. What is this type of an offer called?

Dutch auction

Blue Stone Builders recently offered to sell 45,000 newly issued shares of stock to the public. The underwriters charged a fee of 8.2 percent and paid Blue Stone Builders the uniform auction price for each of those shares. Which one of the following terms best describes this underwriting?

term loans.

Direct business loans typically ranging from one to five years are called:

private equity.

Equity financing of new, non-public companies is broadly referred to as:

underwriter.

Executive Tours has decided to go public and has hired an investment firm to handle the offering. The investment firm is serving as a(n):

private placement.

The High-End mutual fund recently loaned $13.6 million to Henderson Hardware for 15 years at 6.8 percent interest. This loan is best described as a:

gross spread.

The difference between the underwriters' cost of buying shares in a firm commitment and the offering price of those securities to the public is called the:

group of underwriters sharing the risk of selling a new issue of securities.

A syndicate can best be defined as a:

Initial public offering

JLK is a partnership that was formed two years ago and has been extremely successful thus far. The owners have decided to incorporate and offer shares of stock to the general public. What is this type of an equity offering called?

Firm commitment

Jones & Co. recently went public and received $23.07 a share on their entire offer of 30,000 shares. Keeser & Co. served as the underwriter and sold 28,500 shares to the public at an offer price of $26.50 a share. What type of underwriting was this?

Green Shoe provision

Mobile Units recently offered 75,000 new shares of stock for sale. The underwriters sold a total of 78,500 shares to the public at a price of $16 a share. The additional 3,500 shares were purchased in accordance with which one of the following?

2 years.

Shelf registration allows a firm to register multiple issues at one time with the SEC and then sell those registered shares anytime during the subsequent:

reviews registration statements to ensure they comply with current laws and regulations.

The Securities and Exchange Commission:

crowdfunding.

The raising of small amounts of capital from a large number of people is known as:

Sale of newly issued equity shares by a publicly owned company

What is a seasoned equity offering?

decrease.

When a firm announces an upcoming seasoned stock offering, the market price of the firm's existing shares tends to:

Venture capitalists should have key contacts and financial strength.

Which one of the following statements concerning venture capital financing is correct?

Direct placement debt tends to have more restrictive covenants than publicly issued debt.

Which one of the following statements is correct concerning the issuance of long-term debt?

knows upfront the amount of money it will receive from the stock offering.

With firm commitment underwriting, the issuing firm: