Reference no: EM132232713

1.) Historically, underpricing occurred more frequently in IPOs of ___________ companies.

Select one:

a. larger

b. more well-known

c. technology

d. highly speculative

e. pharmaceutical

2.) The costs of issuing securities include

Select one:

a. underallotment costs.

b. underwriting spread.

c. sunk costs.

d. default costs.

e. all of the above.

3.) You own and operate a start-up company with two of your siblings. You are looking for venture capital to help grow your business. Which of the following is not something that you should consider in your choice of venture capitalist?

Select one:

a. financial strength

b. references from other start-ups

c. exit strategy

d. style

e. All of the above are key considerations in choosing a venture capitalist.

4.) In regular underwriting of a cash offer, the ___________ gives the underwriting syndicate the option to decline the issue in the event of a precipitous price drop.

Select one:

a. best efforts clause

b. market out clause

c. Dutch auction clause

d. underallotment option

e. lockup option