Chapter 10 Flashcards
1
Q
Anti-dilution Rights
A
A provision in an option or a convertible security. It protects an investor from dilution resulting from later issues of stock at a lower price than the investor originally paid.
2
Q
Board Membership
A
Investors usually request a board seat in the company
3
Q
Bridge financing
A
a type of gap financing arrangement wherein the borrower can get access to short-term loans for meeting short-term liquidity requirements.
4
Q
Cash Flow Estimates
A
by looking at forecasted earnings and multiplying those earnings by a factor relevant to the industry, a value can be computed
5
Q
Checking account
A
an account at a bank against which checks can be drawn by the account depositor
6
Q
convertible loans
A
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