U6: What is an IPO?

Dave was able to determine the value of an IPO

False

What are some other strategies Dave could have used instead of conducting an IPO? (Check all that apply) a. Dave could have saved his profits and used the savings for his needs b. Dave could have taken out a loan with the bank c. There were no other strategies and that is why he conducted the IPO

a. Dave could have saved his profits and used the savings for his needs b. Dave could have taken out a loan with the bank

What did Dave lose by issuing stock in his food truck business? a. Dave lost 10% of the company's shares because the stockholders now hold 10% of the company b. He will now have to pay back the investors for the money they put into his company c. He lost control of his company and now the stockholders will have the decision making power d. He did not lose anything

a. Dave lost 10% of the company's shares because the stockholders now hold 10% of the company

IPO stands for: a. Interested Public Offering b. Individual Public Offer c. Initial Public Offering d. Initial Private Offering

c. Initial Public Offering

What did Dave gain by conducting an IPO? a. Dave decided against conducting an IPO b. Employees were now able to sell their stocks in the company c. Banks would now loan him money since he had investors buying his business d. He was able to raise funds so he could expand his business

d. He was able to raise funds so he could expand his business