When new shares of common stock are sold to the general public, the proportional ownership of existing shareholders is likely increased.

Question 1 options:

	True
	False

An example of a second stage financing is getting a prototype built and completing a manufacturing plan.

Question 2 options:

	True
	False

A/an refers to the clause in an underwriting contract which prevents insiders such as managers and employees to sell their shares before a specified date.

Question 3 options:

	Lockup agreement.
	Ancillary agreement.
	Green shoe clause.
	Firm commitment.
	Preliminary prospectus.