Quiz Ch 15 – T/F Resale Challenges for Private Securities
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Reselling privately placed securities can be challenging.
True or false: Reselling privately placed securities can be challenging.
True or false: A rights issue is when a public company extends an offer of shares exclusively to its current shareholders, aiming to raise extra capital.
True or false: A rights issue, like a general cash offering, presents a share purchase proposal to both existing and potential shareholders.
True or false: Rights offerings involve shares priced at a substantial discount to market value, motivating shareholders to exercise or sell their rights.
True or false: Sarbanes-Oxley Act reduced reporting for small public companies and decreased return to private ownership.
True or false: The SEC restricts private placement sales to a select group of informed investors.
True or false: The SEC assesses the registration statement to evaluate the advisability of investing in the firm.
True or false: Shelf registration is a process that enables companies to submit multiple registration statements for a single issuance of securities.
True or false: Shelf registration is a more prevalent choice for raising equity capital compared to debt financing.
True or false: Some accomplished companies offer venture capital to innovative startups.