Randy`s

July 12, 2011
Maria Alejandra Izquierdo

Randy`s
Mini Case #5

a. What agencies regulate securities markets?

a) The Securities and transfigure Commission (SEC) regulates:
Interstate public offerings.
National stock exchanges.
business by corporate insiders.
The corporate proxy process.
b) The Federal retain Board controls margin requirements.
c) States control the issuance of securities within their boundaries.
d) The securities industry, by dint of the exchanges and the National Association of Securities Dealers (NASD), takes actions to ensure the integrity and credibility of the calling system.

b. How argon startup firms usually financed?

Founders resources
Angels
impale capital funds
Most capital in fund is provided by institutional investors
Managers of fund are called venture capitalists
Venture capitalists (VCs) rag on boards of companies they fund

c. Differentiate between a private positioning and a public offering.
The different between private locating and public offering are the following:

.

In a private placement, such as to angels or VCs, securities are change to a few investors rather than to the public at large.





In a public offering, securities are offered to the public and must be registered with SEC.

Privately placed stock is not registered, so gross revenue must be to accredited (high net worth) investors.

Send bulge offering memorandum with 20-30 pages of data and information, prepared by securities lawyers.

Buyers disclose that they meet net worth/income requirements and they will not switch to unqualified investors.

d. Why would a company consider firing public? What are some advantages and disadvantages?

The advantages of going public are:

Current stockholders can diversify.

Liquidity is increased.
Easier to raise capital in the future.
Going public establishes firm...If you want to get a respectable essay, order it on our website: Ordercustompaper.com



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