If a company sells 10% of itself as measured by the "fully diluted, fully-converted" equity of the company. And the sale is in the form of preferred stock, then the number of "common share equivalents" the new investor will get in this transaction on a "fully-diluted, fully- converted basis is independent of the number of common stock options outstanding in the hands of employees and others at the time of the transaction. That is, the number of options outstanding at the time of the deal is irrelevant to how many common- equivalent shares the investor will get in the deal. True False When a company sells "new" equity to an investor, and assuming the existing investors do not have any "anti-dilution protection," which of the following are generally, logically, always true? (Where 'always' means 99.9% of the time and I can't think of an exception - CM). Mark all that are true. The existing investors, in aggregate will own less of the company than they did before the transaction. The existing investors will necessarily be worse off economically than they were before the transaction. The post-money valuation will be higher than the pre-money valuation. One of the most striking features of the most recent Business Roundtable Statement of Corporate Purpose was the obligation for a company to consider a long list of "stakeholders", including among others: employees, suppliers, and customers, but "shareholders" were dropped from that list of stakeholders and no longer appears in the BR Statement of Corporate Purpose. True False Which of the following statements is most correct? O A company may sell their securities to anyone, whenever they wish, as long as they know who is buying them. A company can sell securities to accredited investors whenever they wish, but only preferred stock. A company can sell securities to anyone so long as those securities have been deemed "investment grade" by the SEC A company can sell securities to anyone so long as those securities are registered with the SEC