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1 | |
The market for venture capital refers to the: |
| | A) | Private financial marketplace for providing equity investment for small, startup firms |
| | B) | Bond market |
| | C) | Market for providing equity to well-established firms |
| | D) | All of the above |
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2 | |
Registration statements are filed with the: |
| | A) | Federal Reserve Board (FED) |
| | B) | Federal Reserve Bank (FRB) |
| | C) | Securities and Exchange Commission (SEC) |
| | D) | Environmental Protection Agency (EPA) |
| | E) | Federal Bureau of Investigation (FBI) |
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3 | |
Generally, underwriters provide the following services to the issuing firm: |
| | A) | Provide advice |
| | B) | Buy new issue |
| | C) | Reselling the issue to the public |
| | D) | All of the above |
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4 | |
A group of investment bankers who pool their efforts to underwrite a large issue of a security is known as: |
| | A) | A syndicate |
| | B) | A private placement |
| | C) | A tombstone group |
| | D) | An underwriter's group |
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5 | |
Generally initial public offerings (IPOs) are: |
| | A) | Overpriced |
| | B) | Correctly priced |
| | C) | Under priced |
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6 | |
A security issue sold directly to the public is called: |
| | A) | A rights offer |
| | B) | A general cash offer |
| | C) | A private placement |
| | D) | An uniform-price auction |
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7 | |
SEC Rule 415 refers to: |
| | A) | The issuance of securities to qualified institutional investors |
| | B) | Blue-sky laws |
| | C) | The provision, which allows large companies to file a single registration statement covering financing plans up to two years, also known as shelf registration |
| | D) | None of the above |
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8 | |
A security issued in the United States that represents shares of stock in a foreign company is called: |
| | A) | American Depositing Receipts (ADRs) |
| | B) | Euros |
| | C) | A bought deal |
| | D) | None of the above |
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9 | |
When a company sells an entire issue of securities to a small group of institutional investors like life insurance companies, pension funds etc., it is called |
| | A) | A rights offering |
| | B) | A general art offering |
| | C) | A private placement |
| | D) | An unseasoned issue |
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10 | |
SEC registration is required when a company makes |
| | A) | A public offering of securities issue of value greater than $5 million |
| | B) | A private placement of securities |
| | C) | Both a and b |
| | D) | A public offering of securities issue of value less than $5 million and maturities less than 9 months |
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11 | |
A rights issue is also called: |
| | A) | A private placement |
| | B) | Shelf registration |
| | C) | Initial public offering (IPO) |
| | D) | A privileged subscription |
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12 | |
Klear Sky Corporation has 1,000,000 shares outstanding. It wishes to issue 250,000 new shares using rights issue. How many rights are needed to buy one new share? |
| | A) | 1 right/share |
| | B) | 2 rights/share |
| | C) | 3 rights/share |
| | D) | 4 rights/share |
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13 | |
Assuming everything else remains the same, when a stock goes ex-rights its price should: |
| | A) | Increase |
| | B) | Decrease |
| | C) | Remain the same |
| | D) | Impossible to predict |
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14 | |
Under pricing is not a serious problem for most initial public offerings (IPOs) |
| | A) | True |
| | B) | False |
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15 | |
Shelf registration allows the firm to file a registration statement with the SEC to cover a series of subsequent issues. |
| | A) | True |
| | B) | False |
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