Costs and Pricing
The IPO Process
Crowd Surfin'
Laws and Regulation
Math Time
400

This phenomenon occurs when the IPO is priced too low, causing the company to miss out on capital.

What is underpricing?

400

After completing registration and determining investor interest, this ad is printed to announce the IPO.

What is the tombstone?

400

The most common medium used for crowdfunding.

What is the Internet?

400

A violation of this Act within the last three years would bar a company from issuing a shelf cash offer.

What is the Securities Act of 1934?

400

Page 1

9.40%

800

Feeling lucky? This is the average spread charged by underwriters.

What is 7%?

800

When IPO shares are sold directly to investors and proceeds go to the issuer.

What is a bought deal?

800

Crowdfunding where companies pre-sell products or services is known as this.

What is project crowdfunding?

800

Corporate insiders and proxy processes are regulated by this entity. Horns up?

What is the Conference of Champions?

800

Page 2

$140,759 or 14.92%

1200

What is missing from this list of why stock prices often fall after new equity is issued?

Managerial information, debt usage, .

1200

Daily Double!

Due diligence is part of this step in the IPO process.

1200

Selling this gives the holder the right to use a company's service in the future.

What is an ICO (Initial Coin Offering)?

1200

Integrity and credibility in the trading system are ensured by this.

What is FINRA?

1200

Page 3

$78.60 ish

1600

This phrase refers to the opportunity cost for the issuing company when they sell shares at a price lower than the potential market price.

What is "leaving money on the table?"

1600

This event marks the expiration of insider sale restrictions and often causes stock prices to drop.

What is lockup expiration?

or

What is the end of the lockup period?

1600

This type of crowdfunding involves offering ownership in the company.

What is equity crowdfunding?

1600

The controller of intra-state issuances.

What are the States?

1600

Page 4

21.71% ish

2000

The legal and accounting costs of going public can exceed this amount.

What is $400,000?

2000

According to the slides, this is the last step in Magdy's IPO Process.

What is aftermarket?

2000

Daily Double!

This 2012 law made it easier for companies to raise funds through crowdfunding.

2000

The Federal Reserve Board controls this.

What are margin requirements?


2000

Page 5

$1,409 ish

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