SB15 - Raising Capital
call option
A right is basically a _ _
existing
A rights offering grants _ shareholders the right to buy new shares
1
A stock typically goes ex rights _ trading day(s) before the holder-of-record date.
debt, overvalued
After a new equity issue, a firms stock price may drop because firm has too much _ management believes firm is _
unseasoned new issue
An IPO is also known as an _ _ _
firm commitment
An investment bank that underwrites a security issue by buying securities under the offering price and accepting the risk is using the _ _ method and purchases entire issue
internet
Crowdfunding typically uses the _ to raise small amounts of capital from large number of people
avoided
Dilution of the ownership of existing shareholders can be _ with a rights offering.
new shares
Funds raised divided by subscription price is the number of _ _
excess demand
Green shoe provision is used to cover _ _ and oversubscriptions
underwriter
If a cash offer is a public offer, a _ is usually involved, also is an investment firm that acts as intermediate between company and public
direct
In a _ listing, a firm arranges for its stock to be listed on an exchange without marketing and other help from underwriter
nothing, sold, subscribe
In a rights offering, when an existing stockholder is notified that they have been given one right for each share owned they can Do _ and let the rights expire Order all rights to be _ _ to the full member of entitled shares
ICO
Many startups are now choosing to raise funds through a _
more
Market dilution is _ important than book dilution
privately issued
Most debt is _ _
40
Quiet period ends _ days after IPO
issued
Rights are _ by the firm, not a call option
dribble
Shelf registration allows firms to issue new equity through the _ method
alternate
Standby underwriting arrangement with rights offering gives the firm an _ avenue of sale to ensure success of rights offering
partial adjustment
The _ _ phenomenon refers to the fact that most firms may raise IPO offer prices, but do not move the price high enough
flotation
The _ costs are costs associated with new issue
winners
The _ curse describes how average investors in IPO receive full allocation of new shares because those in the know avoided the issue
lockup
The _ period is the tine where an agreement in underwriting prohibits insider shares being sold immediately following IPO
public
The large payoff for a venture capital firm typically comes when the company is either sold to another company or goes _
old, new
The number of rights needed to buy one share is found by dividing the _ shares by the _ shares
underpricing, number
There are pronounced cycles in the degree of IPO _ and the _ of IPOs
board approval
To issue a security to the public, management must obtain _ _
standby
Underwriter can purchase unsubscribed shares through _ underwriting
public
Venture capitalist makes big payoff when successful startup goes _
growth prospects, life cycle, size
Whether a frim obtains capital by debt or equity financing depends on The firms _ _ the firms _ _ stage The _ of the firm
highest
With the competitive offer method of selecting a syndicate, the issuing firm offers its securities to the _ bidding underwriter.
personal contacts, limited
_ _ are important in gaining access to VC market and access to venture capital market is _
privileged subscription
_ _ is another name for a rights offering
gross spread
_ _ is the difference between the price the issuer receives and the offering price
green shoe
_ _ provision is a contract provision that gives the underwriter the option to purchase additional shares from issuer at the offering price
financial strength, exit, style
_ _, strategy, and _ are important considerations when choosing between venture capitalists
initial coin offering
_ __ is initial sale of token on digital currency platform
underpricing
_ helps new shareholders earn a higher return on the shares they buy
dilution
_ is loss in existing shareholders value
crowdfunding
_ is the practice of raising small amounts of capital from a large number of people
aftermarket
_ is the time period after a new issue is initially sold to the public
cheaper
competitive underwriting is typically _ than a negotiated one
below
subscription price must be _ the market price of the stock in a rights offer
