Raising Capital Exercise
I. DEFINITIONS
VENTURE CAPITAL a 1. The financing provided for start-up, often high-risk, private business enterprises is called: a. venture capital. b. junk bonds. c. flotation costs. d. initial public offerings. e. financial futures.
REGISTRATION STATEMENT b 2. The document(s) filed with the SEC disclosing all material information relating to the firm making an offering of public securities is called the: a. offering prospectus. b. registration statement. c. red herring filing. d. indenture contract. e. SEC Form 13-J.
REGULATION A c 3. The SEC regulation that exempts public issues of less than $5 million from most registration requirements is called: a. the Green Shoe Provision. b. the red herring Provision. c. Regulation A. d. Regulation Q. e. the Open Markets Exemption.
PRELIMINARY PROSPECTUS d 4. The preliminary prospectus distributed to investors during the SEC waiting period is often called a(n): a. indenture contract. b. signature form 10-W. c. letter of comment. d. red herring. e. Green Shoe.
LETTER OF COMMENT e 5. The _____ is transmitted to the prospective issuing firm by the SEC when they have suggestions for changes to the registration statement and/or its supporting documents. a. indenture contract b. Green Shoe statement c. Regulation A statement d. preliminary prospectus e. letter of comment
PROSPECTUS a 6. The legal document describing details of the issuing corporation and its security offering to potential investors is called the: a. prospectus. b. tombstone advertisement. c. letter of comment. d. Regulation A statement. e. rights offering.
TOMBSTONE b 7. Advertisements in, for example, The Wall Street Journal announcing a corporation’s public offering of securities, along with a list of the investment banks handling the offering, are called: a. red herrings. b. tombstones. c. Green Shoes. d. registration statements.
VENTURE CAPITAL a 1. The financing provided for start-up, often high-risk, private business enterprises is called: a. venture capital. b. junk bonds. c. flotation costs. d. initial public offerings. e. financial futures.
REGISTRATION STATEMENT b 2. The document(s) filed with the SEC disclosing all material information relating to the firm making an offering of public securities is called the: a. offering prospectus. b. registration statement. c. red herring filing. d. indenture contract. e. SEC Form 13-J.
REGULATION A c 3. The SEC regulation that exempts public issues of less than $5 million from most registration requirements is called: a. the Green Shoe Provision. b. the red herring Provision. c. Regulation A. d. Regulation Q. e. the Open Markets Exemption.
PRELIMINARY PROSPECTUS d 4. The preliminary prospectus distributed to investors during the SEC waiting period is often called a(n): a. indenture contract. b. signature form 10-W. c. letter of comment. d. red herring. e. Green Shoe.
LETTER OF COMMENT e 5. The _____ is transmitted to the prospective issuing firm by the SEC when they have suggestions for changes to the registration statement and/or its supporting documents. a. indenture contract b. Green Shoe statement c. Regulation A statement d. preliminary prospectus e. letter of comment
PROSPECTUS a 6. The legal document describing details of the issuing corporation and its security offering to potential investors is called the: a. prospectus. b. tombstone advertisement. c. letter of comment. d. Regulation A statement. e. rights offering.
TOMBSTONE b 7. Advertisements in, for example, The Wall Street Journal announcing a corporation’s public offering of securities, along with a list of the investment banks handling the offering, are called: a. red herrings. b. tombstones. c. Green Shoes. d. registration statements.