Terri-Tech Inc

Multiple Choice

Terri-Tech Inc. is a small company made up of two twenty-something software developers. Terri-Tech requires financing to market an innovative application. The dealer with whom the developers have worked has suggested that the developers offer a new issue of shares by means of a direct invitation to the public, through an advertisement in the Globe and Mail Report on Business. The dealer will not assume the risk of the issue being bought. What is the name of this method of equity financing?

A) Private placement.
B) A bought deal.
C) A best efforts deal.
D) A tender issue.
E) A reserve deal.