transaction

Question 1

book runner

Answer 1

the primary underwriter in debt and equity deal.

Question 2

liquidate

Answer 2

to close a business and sell everything it owns in order to pay debts

Question 3

consolidation

Answer 3

1. the combination of separate companies, functional areas, or product lines, into a single one. Differ from a merger in that a new entity is created in the consolidation.
2. The process of maturation in some markets whereby smaller companies are acquired or run out of business, leaving only a few dominant players; here also called shaleout

Question 4

pari pass

Answer 4

often seen in venture capital term sheets, indicating that one series of equity will have the same rights and privileges as another series of equity

Question 5

divident

Answer 5

an amount of profits that a company pays to people who own its shares in the company

Question 6

waiver

Answer 6

a situation in which somebody gives up a legal rights or claim; an official document stating this

Question 7

reimbursement

Answer 7

to pay back money to somebody which they have spent or lost

Question 8

promoter

Answer 8

a person who organises the setting up of a new company

Question 9

tag along right

Answer 9

a contractual obligation of minor shareholder to join the transaction and sell his or her minority stake in the company with majority shareholders

Question 10

right of first offer

Answer 10

a contractual right that the seller must first give the rights holder the opportunity to purchase an asset, but does not set requirements for the transaction.

Question 11

auditer

Answer 11

a person who officially examines the business and financial records of a company

Question 12

warrant

Answer 12

entitling the holder to buy a specific amount of securities at a specific price