COMMERCE 3FA3 Chapter : 3FA3-CH15.docx

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 3FA3
• Professor: Trevor Chamberlain

Document Summary

All firms must, at varying times, obtain capital. The fact that financing is available in stages and is contingent on specified goals being met is a powerful motivating force for the firm"s founders. In addition to providing financing, venture capitalists often actively participate in running the firm. Providing the benefit of experience with previous start-ups as well as general business expertise. Choosing a venture capitalist: financial strength is important, style is important, references are important, contacts are important, exit strategy is important. Creation and sale of securities on public markets. A firm issuing securities must satisfy a number of requirements set out by provincial regulations and statutes and enforced by provincial securities commissions. The basic procedure for a new issue: obtain approval from the board of directors, the firm must prepare and distribute copies of a preliminary prospectus to the osc and to potential investors.