Ch 2 Deck 1

Question 1

when a company raises money by creating and selling shares to the public and proceeds go to issuer

Answer 1

primary offering

Question 2

when a company issues securities for the first time (company goes public)

Answer 2

IPO

Question 3

when a company issues additional securities after its securities are already publicly traded

Answer 3

Follow-on offering

Question 4

when a company raises money by creating and selling shares to the public and proceeds go to the major shareholders

Answer 4

Secondary Offering

Question 5

In a Split Offering proceeds go

Answer 5

partly to issuer partly to shareholders

Question 6

Offering that is part primary and part secondary

Answer 6

Split offering

Question 7

Main thrust of the securities act of 1933 is

Answer 7

to provide disclosure to investors who may want to invest in the securities

Question 8

Securities Act of 1933 requires that investors are given a

Answer 8

prospectus giving detailed information