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Issuing New Securities
Regulation of the Primary Market
Variations in the Underwriting Process
Private Placement of Securities
100
involves the distribution to investors of newly issued securities by central governments, its agencies, municipal governments, and corporations
What is primary market
100
Underwriting activities are regulated by the ________.
What is Initial Public Offerings Market (IPOM).
100
3 variations in the United States, the Euromarkets, and foreign markets of deals that are not underwritten using the traditional syndicate process
What is the bought deal of the Eurostock market, rights offering for underwriting common stock, and auction process and rights offering for the underwriting of bonds
100
In addition to underwriting securities for distribution to the public, securities may be placed with a limited number of institutional investors such as ________.
What are insurance companies, investment companies, pension funds.
200
The participants in the marketplace that work with issuers to distribute newly issued securities are called investment bankers. Investment banking is performed by two groups
What are commercial banks and securities houses
200
A)the nature of the business of the issuer and key provisions or features of the security. B) the nature of the investment risks associated with the security and the background of management. C) the nature of the business of the issuer and the background of management, are contained in
What is a registration statement
200
the underwriter can sell the securities to other investment banking firms for distribution to their clients and/or distribute the securities to its clients.
What is a bought deal
200
________ are the major investors in private placements.
What is Life insurance companies .
300
An investment banker may merely act as an advisor and/or distributor of the new security. The function of buying the securities from the issuer is called ________.
What is underwriting
300
The registration is actually divided into two parts. Part I is the ________. It is this part that is typically distributed to the public as an offering of the securities. Part II contains ________, which is not distributed to the public as part of the offering but is available from the SEC upon request.
What is prospectus and supplemental information
300
the issuer announces the terms of the issue, and interested parties submit bids for the entire issue.
What is the auction process
300
The Securities Act of 1933 does not provide specific guidelines to identify what is a ________.
What is private offering.
400
An ________ is a common stock offering issued by companies that have NOT previously issued common stock to the public.
What is initial public offering (IPO)
400
The law that governs the issuance of securities.
What is The Securities Act of 1933
400
When all bidders buy the amount allocated to them, then the auction is referred to ________.
What is a single-price auction or a Dutch auction.
400
sets forth the guidelines that determine if an issue is qualified for exemption from registration.
What is SEC Regulation D
500
the gross spread as a percentage of the principal for traditional bond offerings
What is 50 basis points
500
A red herring is ________.
What is a preliminary prospectus.
500
found by calculating the difference between the price of a share before the rights offering and the price of a share after the rights offering.
What is the value of a right
500
Investment banking firms assist in the private placement of securities by working with the issuer and potential investors on the design and __________
What is pricing of the security