Randy$$s$,$ a family$-$owned restaurant chain operating in Alabama, has grown to the point that expansion throughout the entire Southeast is feasible. The proposed expansion would require the firm to raise about $$18\mathrm{.}3$ million in new capital. Because Randy$$s currently has a debt ratio of $50\%$ and because family members already have all their personal wealth invested in the company, the family would like to sell common stock to the public to raise the $$18\mathrm{.}3$ million. However, the family wants to retain voting control. You have been asked to brief family members on the issues involved by answering the following questions.

a$.$ What agencies regulate securities markets?

b$.$ How are start$-$up firms usually financed?

c$.$ Differentiate between a private placement and a public offering.

d$.$ Why would a company consider going public? What are some advantages and disadvantages?

e$.$ What are the steps of an initial public offering?

f$.$ What criteria are important in choosing an investment banker?

g$.$ Would companies going public use a negotiated deal or a competitive bid?

h$.$ Would the sale be on an underwritten or best efforts basis?