1. Firms go public to:

a. diversify public debt holders' risk. b. raise additional funds. c. avoid venture capital financing. d. increase their amount of borrowed funds. e. sell the company to outsiders.

2. You own 100 of the 15,000 outstanding shares of Delta Movers stock. The firm just announced that it will be issuing an additional 5,000 shares to the general public in a cash offer at $22 per share. What type of event are you participating in if you decide to purchase 100 of these additional shares?

Select one: a. IPO b. Seasoned equity offering c. Dutch auction d. Rights offer e. Private placement

3. What is the group called who share both the risks and the marketing responsibilities for a securities offering?

Select one: a. Syndicate b. Dutch auction group c. Under writing cartel d. Firm commitment group e. Venture capitalists