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21 Cards in this Set
- Front
- Back
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A securities firm that specializes in helping other business firms obtain the money they need.
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Investment Banking Firm
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What are the two types of agreements that would be offered between the Investment Banker and the company?
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1)Purchase agreement
2) Best Effort agreement |
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If it's the very first time a corp. is making a public offering of stock this is called an _______ ________ ________.
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Initial Public Offering
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When a large block of outstanding stock or treasury stock is being sold it is known as a ______ offering or distribution.
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Secondary offering
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I stock offering that has never before been offered (unissued) is known as a _______ offering.
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Primary
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How many primary distributions can a company have?
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Each time they need additional capital.
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How many IPOs can a company offer?
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1
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When a corporation makes a public offering of it's stock. What provision is it bound by?
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Securities Act of 1933
or Act of Full Disclosure |
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The government agency charged with enforcement of the nations securities laws and regulations is the.
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Securities and Exchange Commision (SEC)
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When a corporation makes a public offering of its stock a __________ __________ must be submitted to the SEC.
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Registration statement
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During the registration period or cooling-off period while the SEC is reviewing the offering what will the I.Banker create?
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A Preliminary Prospectus
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What is the Preliminary Prospectus often called and why?
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A Red Herring
Because of the Red Lettering on the front page telling investors its a preliminary prospectus. |
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What does a Preliminary Prospectus do?
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Gives potential investors information about the company and the securities to be issued.
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What two things does a Preliminary Prospectus not include?
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A public offering price
and The effective date |
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If a prospect is interested in your red herring he will give you an idication of interest. Can you take his order or any money?
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NO!
Under no Circumstances can a sale be made befor the effective date. |
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A ________ buys and sells securities for the account and risk of someone else and charges a commission the the services rendered.
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Broker/Agent
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One who acts as a dealer rather than an agent or broker. A dealer who buys and sells for his own account and risk.
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A Principal
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T/F
Not all securities are required to be registered with the SEC. |
True
Gov, fed and local; commerc paper; Private placements and Intra-state offerings are exempt. |
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A person who handles money on behalf of someone else.
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A Fiduciary
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The Fiduciary must abide by one of two criteria that a state may adopt as to what a fiduciary can invest. They are?
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Legal List
Prudent Investor Rule |
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Corporate underwriting is done on either a __________ ________
or _____________ ________ basis. |
Firm Commitment
Best Effort |
