Exam 22: Investment Banks, Security Brokers and Dealers, and Venture Capital Firms

The most active investment banking firm in the private placement market is ________.

An instruction to a securities agent to sell a stock when it reaches a specific price is a ________.

The ________ of the volume handled by brokers and dealers is in the publicly held securities.

A ________ is a specialized firm that finances young,start-up companies.

Which of the following statements about venture capital funding is not correct?

In a ________ agreement,the investment banker makes no guarantee regarding the price the issuing firm will receive,but agrees to sell the securities on a commission basis.

An instruction to a securities agent to purchase a stock as long as its price does not exceed a specified level is a ________.

What ultimately happened to Webvan,the Internet grocer that received more than $1 billion in venture financing.

Which of the following is the second phase in the life cycle of a venture capital deal?

SEC registration is

With private investing,

Venture capital firms reduce risk by investing in only a few companies which can be carefully monitored and nurtured.

There are ________ risk and ________ returns to investors in private equity buyouts.

Which of the following is the third and final phase in the life cycle of a venture capital deal?

Investment banks advertise upcoming securities offerings with block ads in the Wall Street Journal.Such an ad is called a ________.

The Securities Acts Amendment of 1975 abolished fixed commissions.

The buyers of private placement issues are most likely to be ________.

Discuss the life cycle of a equity buyout.

Investment banks find it less difficult to price securities if the firm has prior issues currently selling in the market,called ________.

Discuss the several ways in which venture capitalists reduce asymmetric information.