投资学英文版课件Ch2 The Creation of Financial Assets.pptVIP

A Firm Commitment An agreement with an investment banker who guarantees a sale of securities by agreeing to purchase the entire issue at a specified price. Purchase the entire issue of securities; At a specified price; Subsequently sell to the general public; Risk of selling is with the underwriters The pricing of the underwritten securities is crucial. Too high initial offer price—unable to sell the securities—two choices: Maintain the offer price / hold the securities in inventory… Let the market find a lower price level… Tie up funds; Decrease profit margin Bring losses to initial buyers Underpricing new securities—demand exceed supply—rise price Initial purchasers: reap windfall profits underwriters: suffer losses There is a greater incentive to underprice the securities. Facilitate the sale; Generate immediate profits for the initial buyers; Marketing New Securities Registration with SEC Issue a final prospectus Market new securities Issue a preliminary prospectus If accepted underwriting Registration Registration with the Securities and Exchange Commission (SEC); Registration the disclosure of information concerning the firm, the securities being offered for sale, and the use of the proceeds from the sale Issuance of a Preliminary Prospectus: (a red herring) an initial document detailing the financial condition of a firm that must be filed with the SEC to register a new issue of securities The cost of printing the red herring is borne by the issuing firm. 初步（非正式）招股说明书 红鲱鱼 Major contents: Income statement, balance sheets Current activities Regulatory bodies Nature of competition Not include the price of the securities If immature, the firm has the option of postponing or even canceling the underwriting. 主要内容 Publish a final prospectus The SEC is responsible for: All required information provided; The prospectus complete in format and content; Added contents: Price of securities Proceeds to the company Underwriting discount Any more recent financial data 新增内