Quiz Ch 15 – Choosing Between Private Placement and Public Issue
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
For companies issuing smaller security offerings, what method might they prefer, and why?
For companies issuing smaller security offerings, what method might they prefer, and why?
What are the components included in the direct expenses of a stock issue?
What would be the result in the case of an overpriced new stock offering that can still be sold?
In a private placement, which cost is typically avoided?
In the case of underpricing an IPO, who primarily bears the majority of the cost?
What is NOT considered an advantage of shelf registration?
The introduction of shelf registration probably led to an increase in which aspect?
Which benefit is NOT typically associated with shelf registration?
Which reason is the least likely to drive entrepreneurs to invest their personal funds in start-up projects?
Based on research, what is the typical pricing trend for new security issues?