Quiz Ch 15 – Benefits of Shelf Registration for Firms
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What advantages does shelf registration provide for firms?
What advantages does shelf registration provide for firms?
Why does underpricing of new issues tend to happen more often than overpricing?
What are the characteristics of stock sold through a rights issue?
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?