CORPORATE FINANCE (LL+CONNECT)
12th Edition
ISBN: 9781266427404
Author: Ross
Publisher: MCG CUSTOM
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Chapter 20, Problem 14CQ
Summary Introduction
To explain: The reasons for shelf registration used by many companies in place of syndication.
Bond:
Bond refers to the securities which are traded in the public to raise the capital when needed. It is an investment with a fixed income where an investor gives money to an entity or individual for a specified period of time at a fixed rate.
Underpricing:
The underpricing term refers to the offering of the stocks or the bond at a low price than before. The stocks or the debt are said to be underpriced when they are traded at a lower
Shelf registration:
The shelf registration is a permit where a company by the way of initial public offering can sell or offer securities without issuing prospectus for every offering. The company gets a permit when it registers those offerings which it expects to be sold within the coming two years.
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Chapter 20 Solutions
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