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| 1 | |
The market for venture capital refers to the: |
| | A) | Private financial marketplace for providing equity investment for small, startup firms |
| | B) | Bond market |
| | C) | Market for providing equity to well-established firms |
| | D) | All of these options |
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| 2 | |
Registration statements are filed with the: |
| | A) | Federal Reserve Board (FED) |
| | B) | Federal Reserve Bank (FRB) |
| | C) | Securities and Exchange Commission (SEC) |
| | D) | Environmental Protection Agency (EPA) |
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| 3 | |
Generally, underwriters provide the following services to the issuing firm: |
| | A) | Advice |
| | B) | Buy new issue |
| | C) | Reselling the issue to the public |
| | D) | All of these options |
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| 4 | |
A group of investment bankers who pool their efforts to underwrite a large issue of a security is known as: |
| | A) | A syndicate |
| | B) | A private placement |
| | C) | A tombstone group |
| | D) | An underwriter's group |
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| 5 | |
Generally initial public offerings (IPOs) are: |
| | A) | Overpriced |
| | B) | Correctly priced |
| | C) | Under-priced |
| | D) | Unable to be determined |
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| 6 | |
A security issue sold directly to the public is called: |
| | A) | A rights offer |
| | B) | A general cash offer |
| | C) | A private placement |
| | D) | An uniform-price auction |
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| 7 | |
The provision that allows companies to file a single registration statement covering financing plans for up to two years is called: |
| | A) | Syndicate |
| | B) | Blue-sky laws |
| | C) | Shelf registration |
| | D) | None of these options |
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| 8 | |
When a company sells an entire issue of securities to a small group of institutional investors like life insurance companies, pension funds, etc., it is called |
| | A) | A rights offering |
| | B) | A general art offering |
| | C) | A private placement |
| | D) | An unseasoned issue |
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| 9 | |
A rights issue is also called: |
| | A) | A private placement |
| | B) | Shelf registration |
| | C) | Initial public offering (IPO) |
| | D) | A privileged subscription |
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| 10 | |
Klear Sky Corporation has 1,000,000 shares outstanding. It wishes to issue 250,000 new shares using rights issue. How many rights are needed to buy one new share? |
| | A) | 1 right/share |
| | B) | 2 rights/share |
| | C) | 3 rights/share |
| | D) | 4 rights/share |
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| 11 | |
Assuming everything else remains the same, when a stock goes ex-rights, its price should: |
| | A) | Increase |
| | B) | Decrease |
| | C) | Remain the same |
| | D) | Impossible to predict |
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| 12 | |
The management company of a venture capital fund generally receives a fixed fee and a share of the profits, called: |
| | A) | Carried interest |
| | B) | Spread |
| | C) | Private equity |
| | D) | Mezzanine financing |
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| 13 | |
Wealthy individuals who invest in the new companies are known as |
| | A) | Angel investors |
| | B) | Presidential candidates |
| | C) | Stakeholders |
| | D) | Financial gurus |
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| 14 | |
Blue-Sky laws |
| | A) | Regulate sales of long-term debt within the state |
| | B) | Regulate public offering registration within the state |
| | C) | Regulate sales of securities within the state |
| | D) | None of these options |
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| 15 | |
Wise bidders know that there is little cost to overbidding in |
| | A) | Uniform-price auction |
| | B) | Discriminatory auction |
| | C) | Both A and B |
| | D) | None of these options |
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