7. Security offering process Aa Aa Apart from listing shares on stock markets and engaging in initial public offerings (IPOs), companies often resort to alternative methods of raising capital. Consider the following case, and answer the question that follows: In April 2005, Petrosearch Energy Corporation announced the sale of $12.6 million of common stock at a price of $1.36 per share to a group of accredited investors consisting of U.S.-based investment funds. The previous case is an example of: Shelf registration Public cash offering Private placement A firm decides to raise capital and has made a preliminary decision to sell a block of securities to the entity that makes the highest offer. This procedure is referred to as a Consider the case of Bohemian Manufacturing Company's public cash offering. Hurray Bank was the underwriter in the deal. Hurray Bank sold 1,100,000 shares to the public at $17.60 per share. Bohemian received $18,972,800 from the public offering. Hurray Bank's underwriting spread in this deal was What is it called when the underwriter has the right to buy a certain percent of additional new shares, beyond the initial offering amount, at a price equal to the offering price? Green shoe option Standby underwriting