Questions from Entrepreneurial Finance

Q: When an investment banking firm decides whether to underwrite or market a

When an investment banking firm decides whether to underwrite or market a securities issue, what is meant by a firm commitment and best efforts?

Q: Describe the two following terms that may be involved in underwriting a

Describe the two following terms that may be involved in underwriting a new securities issue: (a) green shoe and (b) lockup provision.

Q: What is meant by initial public offering (IPO) underpricing?

What is meant by initial public offering (IPO) underpricing?

Q: What is a systematic liquidation of a venture? What are some

What is a systematic liquidation of a venture? What are some of the advantages and disadvantages of a systematic liquidation?

Q: What is a private workout? Also, describe some of the

What is a private workout? Also, describe some of the characteristics of ventures that are likely to engage in private workouts.

Q: What is a private liquidation? What does the process of assignment

What is a private liquidation? What does the process of assignment mean?

Q: Describe the absolute priority rule.

Describe the absolute priority rule.

Q: What are the steps or stages in a “typical” execution

What are the steps or stages in a “typical” execution and time line schedule used in planning and executing an IPO?

Q: What is bankruptcy and how is it used by ventures?

What is bankruptcy and how is it used by ventures?

Q: Describe a venture bankruptcy. Also, indicate the difference between

Describe a venture bankruptcy. Also, indicate the difference between (a) a voluntary bankruptcy petition and (b) an involuntary bankruptcy petition.