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21 Cards in this Set

  • Front
  • Back
A securities firm that specializes in helping other business firms obtain the money they need.
Investment Banking Firm
What are the two types of agreements that would be offered between the Investment Banker and the company?
1)Purchase agreement

2) Best Effort agreement
If it's the very first time a corp. is making a public offering of stock this is called an _______ ________ ________.
Initial Public Offering
When a large block of outstanding stock or treasury stock is being sold it is known as a ______ offering or distribution.
Secondary offering
I stock offering that has never before been offered (unissued) is known as a _______ offering.
How many primary distributions can a company have?
Each time they need additional capital.
How many IPOs can a company offer?
When a corporation makes a public offering of it's stock. What provision is it bound by?
Securities Act of 1933
Act of Full Disclosure
The government agency charged with enforcement of the nations securities laws and regulations is the.
Securities and Exchange Commision (SEC)
When a corporation makes a public offering of its stock a __________ __________ must be submitted to the SEC.
Registration statement
During the registration period or cooling-off period while the SEC is reviewing the offering what will the I.Banker create?
A Preliminary Prospectus
What is the Preliminary Prospectus often called and why?
A Red Herring

Because of the Red Lettering on the front page telling investors its a preliminary prospectus.
What does a Preliminary Prospectus do?
Gives potential investors information about the company and the securities to be issued.
What two things does a Preliminary Prospectus not include?
A public offering price
The effective date
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?
Under no Circumstances can a sale be made befor the effective date.
A ________ buys and sells securities for the account and risk of someone else and charges a commission the the services rendered.
One who acts as a dealer rather than an agent or broker. A dealer who buys and sells for his own account and risk.
A Principal

Not all securities are required to be registered with the SEC.
Gov, fed and local; commerc paper; Private placements and Intra-state offerings are exempt.
A person who handles money on behalf of someone else.
A Fiduciary
The Fiduciary must abide by one of two criteria that a state may adopt as to what a fiduciary can invest. They are?
Legal List

Prudent Investor Rule
Corporate underwriting is done on either a __________ ________
or _____________ ________ basis.
Firm Commitment

Best Effort