Term
| Which of the following is not a way to harvest a venture? |
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Definition
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Term
| When registering equity and selling it via an IPO of new shares followed by a secondary offering of existing shares, this venture harvesting process is known as? |
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Definition
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Term
| The acquisition of the venture by family members, managers, or outside buyers is a venture harvesting process known as? |
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Definition
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Term
| The distribution of the venture’s cash flows directly to the owners is a venture harvesting process known as? |
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Definition
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Term
| Which of the following is not an advantage of a systematic liquidation? |
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Definition
| the taxation treatment of liquidation proceeds as ordinary income |
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Term
| Which of the following is not a disadvantage of a systematic liquidation? |
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Definition
| the harvesting of the investment gets spread out over a number of years |
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Term
| Which of the following is not a candidate for a leveraged buyout? |
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Definition
| a venture with a high debt ratio |
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Term
| Shares registered with the Securities and Exchange Commission and state securities regulators and sold to the public are known as? |
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Definition
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Term
| The sale of new securities is known as? |
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Definition
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Term
| The sale of used shares is known as? |
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Definition
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Term
| In the investment banking process, which of the following is a duty of the investment bank? |
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Definition
| to find buyers for a firm’s securities |
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Term
| The difference between what the investment bank gets from selling securities to public investors and what they pay to the issuing firm is known as? |
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Definition
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Term
| A type of agreement with an investment bank employing only marketing and distribution efforts without the actual transfer of securities ownership to the investment banking syndicate is called? |
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Definition
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Term
| An agreement with an investment bank that involves the purchase and distribution of new securities is known as? |
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Definition
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Term
| The investment banks process of ascertaining, to the extent possible, an issuing firm’s financial condition and investment intent is known as? |
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Definition
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Term
| Which of the following describes when a syndicate’s offering price is less than the market price immediately following the offering? |
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Definition
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Term
| In the aftermarket trading for the venture’s securities, an order that is to be executed as soon as possible at the prevailing market price is known as a: |
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Definition
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Term
| In the aftermarket trading for the venture’s securities, an order that converts to a market order once a certain price is achieved is known as a: |
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Definition
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Term
| In the aftermarket trading for the venture’s securities, an order that can be executed only at a specified price or better is known as a: |
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Definition
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Term
| A venture can be harvested in which of the following ways? |
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Definition
| systematic liquidation, outright sale, going public |
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Term
| The letters IPO stand for: |
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Definition
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Term
| The negotiated period around an equity securities offering during which insiders are prohibited from selling their existing shares is called: |
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Definition
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Term
| Which one of the following is considered to be a disadvantage of systematic liquidation? |
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Definition
| liquidation proceeds are treated as ordinary income (rather than capital gains) |
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Term
| In an outright sale of a venture, the venture can be sold to: |
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Definition
| all of the above;family members, managers,employees,outside (external) buyers |
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Term
| An initial public offering (IPO) involves: |
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Definition
| a venture’s first offering of SEC-registered securities to the public |
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Term
| The type of agreement with an investment bank involving the investment bank’s underwritten purchase and resale of securities is called: |
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Definition
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Term
| An order to purchase stock that can be executed only at a specified price or better is called a: |
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Definition
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