Question Description
- What are the primary services that an investment banker will provide a firm issuing securities?
2.What is the difference between a hostile takeover and a merger?
3. What valuable service do dealers provide that facilitates transaction trading and keeping the markets liquid?
4. Is it possible to make money if you know that the price of a security will fall in the future? How?
5. Suppose the issue of 5,000,000 shares of stock was originally oversubscribed at a price of $15 per share. Calculate the money “left on the table” if you realize that the stock could have been priced at $17.5 per share.
6. Xavi decides to short sell 10,000 shares of Guiness Co. stock, currently trading at $7.00 per share. Determine Xavi’s profits if Guiness stock trades at $5.00 per share at the moment in which Xavi has to buy the shares back.
7. In initial public offerings (IPOs), securities are sold to the public for the first time. Go to http://www .renaissancecapital.com/ipohome/marketwatch .aspx. This site lists various statistics regarding the IPO market.
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- What was the largest IPO offered recently, ranked by amount raised?
- What is the next IPO that will be offered to the public?
- How many IPOs were priced in each of the past four years?