Which of the following stages of equity financing comes last in the traditional order of progression? Investment by friends and family of the founders. Investment by the founders of the business. Initial public offering (IPO). Outside investment by “angel” investors and venture capital firms.

Initial public offering (IPO). More test answers on https://studyhippo.com/accounting-201-connect-ch-10/

If a new venture does not have a strong growth plan and does not expect to be positioned for an initial public offering in five years, the executive summary of its business plan should

Not include any discussion of an exit strategy More test answers on https://studyhippo.com/chapter-7-the-business-plan-creating-and-starting-the-venture/

What do you have to do before you can sell stock in your business? A) Incorporate B) Hold an initial public offering C) Register D) Get a partner E) Ask permission

A More test answers on https://studyhippo.com/mgt-3111-ch-15/

initial public offering (IPO)

first public offering of a corporation’s stock More test answers on https://studyhippo.com/mgmt-1-chapter-19-20-securities-markets-money-financial-reserve/

Which TWO of the following new issues may be purchased by an employee of a broker-dealer under the New Issue Rule? I. An exchange-traded fund II. An initial public offering in which the RR’s firm is not an underwriter III. A new issue of common stock in which the broker-dealer is the managing underwriter IV. Convertible debt

I and IV Explanation: An employee of a broker-dealer is considered a restricted person and may not purchase new issues under FINRA rules. New issues under the rule are defined as initial public offerings (IPOs) of equity securities sold under a registration statement. Exemptions from the definition of an IPO include all debt offerings, investment company offerings such as mutual funds and exchange-traded funds, and preferred stock. Whether the broker-dealer is participating as an underwriter does not alter the restrictions. More test answers on https://studyhippo.com/series-7-practice-exam-9-qa/

Is an initial public offering an example of a primary or secondary market transaction? Explain

A primary market is the market in which corporations raise capital by issuing new securities. An initial public offering is a stock issue in which privately held firms go public. Therefore, an IPO would be an example of a primary market transaction. More test answers on https://studyhippo.com/fin-chaps/

A broker-dealer is underwriting an initial public offering (IPO) for a company that is not eligible to be listed on an exchange. The broker-dealer is required to deliver prospectuses:

For 90 days after the effective date Explanation: When a company that is the subject of an IPO is listed, on the effective date of the offering, prospectuses must continue to be delivered on all purchases in the aftermarket for 25 days. The prospectus delivery requirement for an IPO that will not be listed on an exchange continues for 90 days after the effective date. More test answers on https://studyhippo.com/series-7-practice-exam-10/