1.Which one of the following is the name given to a registration of securities under SEC 415 which permits a firm to issue the securities over a two-year period?

a)Negotiated registration

b)Extended registration

c)Seasoned registration

d)Delayed registration

e)Shelf registration

2.ABC Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called?

a)Spread

b)Rights price

c)Commission

d)Offer

e)Markup

3.Currently, you own 10% of the outstanding stock of ABC Company. The company has decided to issue additional shares of stock and has given you the first option to purchase 10% of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?

a)Rights offer

b)Red herring offer

c)Private placement

d)IPO

e)General cash offer

4.Venture capital is most appropriate to be the source of funding for which one of the following? Choose only one

a)Seasonal production

b)Global expansion for an establishment, profitable firm

c)New, high risk venture

d)Daily operations for an established, profitable firm

e)Bankruptcy reorganization

5.Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?

a)Best efforts underwriting

b)Private placement

c)Firm commitment underwriting

d)Initial public offering

e)Rights offer