Fiesta Corporation intends to come up with capital through making a public offering of its securities. Fiesta Corporation intends to sell to a. The general public b. Its partners c Its local community d. Is existing stockholders
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- Mikasa Enterprises needs additional funding and intends to sell its shares in the stock market thru an initial public offering (IPO). This transaction is considered as: A. Private placement B. Public offering C. Any of these D. Financial institution transactionLLL Corporation decided to sell its new securities to a group of investors directly. LLL Corporation is making a a. Public placement b. Privale placement c. Public offering d. Private offeringPrivate placement is the: a. Sale of securities indirectly to a select group of investors. O b. Sale of newly issued shares of stock to the public. Oc. Offering of new securities to current shareholders on a pro-rata basis. O d. Sale of securities directly to large organizations.
- Given that institutional investors such as insurance companies, mutual funds, and pension funds are the major investors during initial public offerings, explain how each entity sources its funds to be able to participate in IPOs.Describe some ways other than an IPO thatcompanies can use to raise funds from the capitalmarkets.When a company decides to issue capital on the stock market what is the process called? (a) An Initial Public Offering (b) A Rights Issue (c) A Bond Issue (d) An Investment Trust
- Which of the following is an appropriate goal for the firm? Select one: a. All of these b. In secondary markets, outstanding shares of stock are bought and sold among investors. c. An active secondary market causes firms to sell their new debt or equity issues at a higher cost of funds. d. A secondary market allows investors to share their risk and return e. For an investor, the function of secondary markets is to provide profitability for the shares of securities they own.2) Capital raising involves a firm’s decision in ____________________. Group of answer choices a) All of the above. b) using long-term debt c) using common shares d) using short-term debtWhich statement(s) below is (are) correct relative to investment companies? (select all that apply) The shares of an investment company will always trade at their NAV. O An investment company enables investors to pool their money with other investors to make diversification more affordable and manageable. O An investment company keeps track of all purchases and sales, of constituent assets, for tax purposes. The shares of an investment company are always redeemable at the fund company who issued the original shares.
- What is the purpose of an initial public offering (IPO)? How does an investment bank facilitate the process? List and describe several recent IPOs. Discuss the advantages and disadvantages of an IPO.Flora plc is a largo listed company which needs to raise new equity finance. It has decided to make an offer of new shares direct to the investing public.What method of public offer is being used by Flora plc?A. Offer for saleB. Initial Public Offering (IPO)C. Offer for subscriptionD. Underwritten offer for sale by tenderInvestment banking firms offer to facilitate the sale of securities to the public in a variety of ways. Which of the following methods guarantees the corporation with a pre - determined price for the securities? OA. a commission basis OB. a competitive bid Oc. a best efforts basis D. an underwriting di
