chapter 9 Flashcards
1
Q
what are the stages of startup funding
A
- self and friends and family
- angel investors
- vc otehr institional
- IPO
2
Q
what is a best effort IPO
A
- used mostly for smaller IPOS
- the underwritter doesnt garuntee that the stock will be sold but tries to sell the stock for the best possible price
3
Q
what are two advantages of going public
A
greater liqidity and better access to capital
4
Q
what source of capital often demand a great amount of control
A
venture capital firms
5
Q
what form of funding is good for early stages and often provides expertise
A
angel investors
6
Q
how to find how much the company is worth with the stock
A
find the total amount of shares issues add them up
then find the most recent pruchase and divide the amount spent by total shares
7
Q
Which of the following statements is NOT true regarding venture capitalists
A
They might invest for strategic objectives in addition to the desire for investment returns
8
Q
A
