Randy`s

July 12, 2011 Maria Alejandra Izquierdo Randy`s Mini Case #5 a. What agencies regulate securities markets? a) The Securities and transfigure Commission (SEC) regulates: Interstate unrestricted flings. interior(a) stock exchanges. business by corporate insiders. The corporate substitute process. b) The Federal retain Board controls margin requirements. c) States control the consequence of securities within their boundaries. d) The securities industry, by dint of the exchanges and the National Association of Securities Dealers (NASD), takes actions to ensure the unity and credibility of the calling system. b. How argon startup firms usually financed? haves resources Angels impale majuscule funds Most capital in fund is provided by institutional investors Managers of fund atomic number 18 called venture capitalists Venture capitalis ts (VCs) rag on boards of companies they fund c. sort out between a private positioning and a unexclusive crack. The different between private locating and populace offering are the following: . In a private placement, such(prenominal) as to angels or VCs, securities are change to a a couple of(prenominal) investors rather than to the public at large.

In a public offering, securities are offered to the public and moldiness be registered with SEC. Privately fixed stock is not registered, so gross revenue must be to accredited (high net worth) investors. Send bulge offering memorandum with 20-30 pages of data and information, prepared by ! securities lawyers. Buyers disclose that they discover net worth/income requirements and they will not switch to outright investors. d. Why would a company consider firing public? What are some advantages and disadvantages? The advantages of going public are: catamenia stockholders can diversify. Liquidity is increased. Easier to raise capital in the future. button public establishes firm...If you want to get a respectable essay, secern it on our website: OrderCustomPaper.com

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