Quiz Ch 15 – Assessing Statements About Private Placements
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which is NOT accurate about private placements?
Which is NOT accurate about private placements?
What advantages does shelf registration provide for firms?
Why does underpricing of new issues tend to happen more often than overpricing?
What are the features associated with a private placement of securities?
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?