Private v. Public Equity
Private Equity typically funded by wealthy investors or institutions.
What is Venture Capital Funds?
IPO stands for this.
What is Initial Public Offering?
When a firm that already has publicly traded stock issues more shares, it is called this.
What is a secondary offering?
The simplest way for shareholders to monitor a firm's performance is by watching this measure.
What is the stock price?
Certificates representing shares of non-U.S. Companies traded in the U.S. are known as this.
What are American Depository Receipts (ADRs)?
Business owners often go public for two reasons: to obtain financing for growth or to do this.
What is cash out of their equity investment?
The detailed document filed with the SEC, including financials and risks, is called this.
What is prospectus?
Companies often repurchase stock because they believe this about their shares.
What is that they are undervalued
This U.S. act requires CEOs and CFOs to certify financial statements as accurate.
What is the Sarbanes-Oxley Act?
Governments sell state-owned companies to private investors in this process.
What is privatization?
At these events, private firms meet with venture capitalists to pitch their businesses and seek funding.
What are venture capital conferences?
This agreement restricts insiders from selling their shares for a period after the IPO.
What is a lockup?
Firms can pre-register securities with the SEC up to two years in advance using this process.
What is shelf registration?
Shareholders may attempt to change the board of directors through this type of contest.
What is a proxy contest?
Foreign firms use emerging stock markets to raise large amounts of this.
What is capital?
This type of fundraising uses online platforms like Kickstarter to collect small contributions from many investors.
The group of securities firms that work with the lead underwriter to place IPO shares is called this.
What is a syndicate?
Secondary offerings often cause stock prices to decline by this percentage range.
What is 1% to 4%?
Shareholders dissatisfied with management can sue the board if they believe directors failed their duties. This is called this.
What is a shareholder lawsuit?
What are international mutual funds?
Private equity funds often rely on this financial tool, also known as borrowing, to boost returns.
What is financial leverage (debt financing)?
Brokers sometimes encouraged investors to place bids above the offer price to create upward momentum. This abuse is called this.
Repurchasing stock typically causes the price to do this, signaling confidence to investors.
What is increase?
Name two common forms of shareholder activism besides selling shares or doing nothing.
What are communicating with the firm and engaging in proxy contests?
These funds trade like stocks but track specific international indexes, giving passive exposure to foreign markets.
What are international exchange-traded funds (ETFs)?