FINE 3200 Lecture Notes - Lecture 2: California State Route 1, Telecommunications Network, Downside Risk
Document Summary
Publicly listed firm shares being trade on well-known mkts publicly traded/owned/companies. Private corporations: small numbers of managers and investors not traded on the public exchanges. Fewer obligation to release fs and other info to public save cost, prevent competitors from knowing info, less pressure on mgt about current business long-term goal. Sell shares in a private placement: bonds sold directly to a lmt number of institutional investors. Forming partnership (multiple indi involved) count as one investor. Max 499 shareholders financial cap raise issue. Underwriting by investment bankers/dealers nesbitt burns (bmo) or scotia mcleod (scotiabank): buy shares and resell. Underwriting syndicate: a group of other investment dealers that a lead firm forms to share the responsibility of a stock issue. Price, number of units and other terms. Prospects: must file and approved by the provincial securities commission. After approval prospectus: registration statement w/ offering price.
