公司理财原版英文课件Chap020.pptVIP

Corporate Equity Security Offerings 17.7% 16.2% 66.1% Private Rule 144A placements Private non-Rule 144A placements Public equity offering Source: Jennifer E. Bethal and Erik R. Sirri, “Express Lane or Toll Booth in the Desert: The Sec of Framework for Securities Issuance,” Journal of Applied Corporate Finance (Spring 1998). Stages of Financing Seed-Money Stage Start-Up First-Round Financing Second-Round Financing Third-Round Financing Fourth-Round Financing Quick Quiz What are some of the important services provided by underwriters? What type of underwriting is the most common in the United States, and how does it work? What is IPO underpricing, and why might it persist? What are some of the costs associated with issuing securities? What is a rights offering, and how do you value a right? What is shelf registration? What is venture capital, and what types of firms receive it? * * This is a good place to review the difference between primary and secondary market transactions. Technically, the sale to the syndicate is the primary market transaction, and the sale to the public is the secondary market transaction. Note that the cost of the issue includes the price paid to the issuing company plus the expenses of selling the issue * The incentive to bid a high price is offset by the possibility that the auction may clear at this price. * This slide consolidates Tables 20.5 and 20.6, which cover the years 1990-2003. * In general, value of one right = [(rights?on price) ? (subscription price)]/(N+l) where N is the number of rights needed to purchase one share. * In general, value of one right = [(rights?on price) ? (subscription price)]/(N+l) where N is the number of rights needed to purchase one share. * * 20-* Issuing Securities to the Public Chapter 20 Copyright ? 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Key Concepts and Skills Understand how securities are sold to the public and the role of investment bankers Understand initial