罗斯公司理财题库全集

Chapter20-IssuingSecuritiestothePublic20-1Chapter20IssuingSecuritiestothePublicMultipleChoiceQuestions1.Anequityissuesolddirectlytothepubliciscalled:A.arightsoffer.B.ageneralcashoffer.C.arestrictedplacement.D.afullyfundedsales.E.astandardcallissue.2.Anequityissuesoldtothefirm'sexistingstockholdersiscalled:A.arightsoffer.B.ageneralcashoffer.C.aprivateplacement.D.anunderpricedissue.E.aninvestmentbanker'sissue.3.Management'sfirststepinanyissueofsecuritiestothepublicis:A.tofilearegistrationformwiththeSEC.B.todistributecopiesofthepreliminaryprospectus.C.todistributecopiesofthefinalprospectus.D.toobtainapprovalfromtheboardofdirectors.E.topreparethetombstoneadvertisement.4.Arightsofferingis:A.theissuingofoptionsonsharestothegeneralpublictoacquirestock.B.theissuingofanoptiondirectlytotheexistingshareholderstoacquirestock.C.theissuingofproxieswhichareusedbyshareholderstoexercisetheirvotingrights.D.strictlyapublicmarketclaimonthecompanywhichcanbetradedonanexchange.E.theawardingofspecialperquisitestomanagement.Chapter20-IssuingSecuritiestothePublic20-25.Companiesusetombstoneadvertisementsinthefinancialpressto:A.announcethedeathofthecompany.B.announcethefailureofafinancialstrategy.C.announcetheavailabilityofanewissueofacorporatesecurity.D.notifythepublicofforeclosure.E.Noneoftheabove.6.Thefirstpublicequityissuemadebyacompanyisa(n):A.initialprivateoffering.B.initialpublicoffering.C.secondaryoffering.D.seasonednewissue.E.Noneoftheabove.7.Thefirstpublicequityissuethatismadebyacompanyisreferredtoas:A.arightsissue.B.ageneralcashoffer.C.aninitialpublicoffering.D.anunseasonedissue.E.BothCandD.8.Anewpublicequityissuefromacompanywithequitypreviouslyoutstandingiscalleda(n):A.initialpublicoffering.B.seasonedequityissue.C.unseasonedequityissue.D.privateplacement.E.syndicate.Chapter20-IssuingSecuritiestothePublic20-39.Thegreenshoeoptionisusedto:A.coveroversubscription.B.coverexcessdemand.C.provideadditionalrewardtotheinvestmentbankersforariskyissue.D.provideadditionalrewardtotheissuingfirmforariskyissue.E.BothAandB.10.Dilutionrefersto:A.theincreaseinstockvalueduetowiderownershipofstock.B.thelossinexistingshareholder'sequity.C.thelossinnewshareholder'sequity.D.thelossinallshareholder'sequity,bothexistingshareholdersandnewshareholders.E.Noneoftheabove.11.DuringtheSECwaitingperiodthepotentialissuingcompanycanissueapreliminaryprospectuswhichcontains:A.exactlythesameinformationasthefinalprospectusexceptanindicationofSECapproval.B.alltheinformationasthefinalprospectusincludingredwritingstatingitisaredherring.C.verylimitedfinancialinformationandredwritingstatingitispreliminary.D.onlyadescriptionofwhatthefundsaretobeusedfor.E.informationverysimilartothefinalprospectuswithoutapricenorwithSECapproval.12.AcompanymustfilearegistrationstatementwiththeSECprovidingvariousfinancialandcompanyhistoryinformation.Theregistrationstatementdoesnotneedtobefiledif:A.theissueislessthan$50million.B.theloanmatureswithin9months.C.theissueislessthan$5.0million.D.BothAandB.E.BothBandC.Chapter20-IssuingSecuritiestothePublic20-413.RegulationAsecurityissuesareexemptfromfullSECregistrationfilinganduseonlyabriefofferingstatementif:A.theissueisforlessthan$5,000,000.B.insiderssellnomorethan$1,500,000ofstock.C.insiderssellnomorethan100,000,000shares.D.BothAandC.E.BothAandB.14.Potentialinvestorslearnoftheinformationconcerningthefirmanditsnewissuefromthe:A.pre-underwritingnegotiatingmeeting.B.redherring.C.letterofcommitment.D.emailsfromtheirformerfinanceprofessor.E.rightsoffering.15.Aregistrationstatementiseffectiveonthe20thdayafterfilingunless:A.theSECisbackloggedwithstatements.B.atombstoneadisissuedindicatingitsdemise.C.aletterofcommentsuggestingchangesisissuedbytheSEC.D.asyndicatecanbeformedsooner.E.Noneoftheabove.16.Investmentbanksperformwhichofthefollowingservicesforcorporateissuers:A.formulatingthemethodusedtoissuethesecurities.B.pricingthenewsecurities.C.sellingthenewsecurities.D.Alloftheabove.E.Noneoftheabove.Chapter20-IssuingSecuritiestothePublic20-517.Agroupofinvestmentbankerswhopooltheireffortstounderwriteasecurityareknownasa(n):A.amalgamate.B.conglomerate.C.greenshoegroup.D.klatch.E.syndicate.18.Afirmcommitmentarrangementwithaninvestmentbankeroccurswhen:A.thesyndicateisinplacetohandletheissue.B.thespreadbetweenthebuyingandsellingpriceislessthanonepercent.C.theissueissolidlyacceptedinthemarketevidencedbyalargepriceincrease.D.whentheinvestmentbankerbuysthesecuritiesforlessthantheofferingpriceandacceptstheriskofnotbeingabletosellthem.E.whentheinvestmentbankersellsasmuchofthesecurityasthemarketcanbearwithoutapricedecrease.19.Whichofthefollowingisnotnormallyanexampleoftheservicesofferedbyinvestmentbankers?A.AidinginthesaleofsecuritiesB.FacilitatingmergersC.ActingasbrokerstobothindividualsandinstitutionalclientsD.OfferingcheckingaccountstocorporationsE.BothCandD20.Inabesteffortsofferingtheinvestmentbankermakestheirmoneyprimarilyby:A.earningthespreadbetweenthebuyingandofferingprice.B.earningacommissiononeachsharesold.C.earningthediscountbetweenthebuyingandofferingpri