AFM121 Chapter Notes - Chapter 23: Startup Company, Leveraged Buyout, Angel Investor

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Andrew Ecclestone

Document Summary

Investment size is 100 times the size of a typical venture capital investment. Invest for strategic objectives and desire for investment returns. Afm 121: topic 2 chapter 23 (the mechanics of raising capital) Exiting an investment in a private company: exit strategy how a company will realize the return from their investment, two ways, acquisition. Initial public offering: alternative way to provide liquidity to investors is for the company to become a publicly traded one. The initial public offering selling stock to the public for the first time. Lead underwriter assigns analyst to cover market made in stock: this increases liquidity of stock in secondary market, valued (cid:271)y issui(cid:374)g (cid:272)o(cid:373)pa(cid:374)y a(cid:374)d u(cid:374)de(cid:396)w(cid:396)ite(cid:396)"s (cid:272)usto(cid:373)e(cid:396)s, this allows investors who purchased shares via the ipo to easily trade shares. If stock is actively traded, issuer will have continued access to equity markets in event company decides to issue more shares in new offering.