Initial Public Offerings Discussion Solutions

Initial Public Offerings Discussion Solutions
Initial Public Offerings Discussion Solutions
1) All of the following are major globally-recognized independent stock
exchanges EXCEPT
A. Nasdaq
B. AMEX
C. NYSE
D. LSE
2) All of the following are major changes for a company post going public EXCEPT
A. Quarterly earnings calls with public investors
B. Equity research analyst coverage
C. Competitive pressures from public peers
D. Public disclosure requirements including 10-Ks and 10-Qs
3) IPO volumes are most strongly correlated to
A. Overall stock market conditions
B. PE deal activity
C. Investment grade debt volumes
D. Global trade policies
4) Which types of companies are most likely to use all or most of the IPO
proceeds to pay down debt?
A. Founder-owned growth companies
B. PE-owned, former LBOs
C. Multi-generational family-owned companies
D. VC-owned tech companies
CHAPTER 8
260 CHAPTER 8 QUESTIONS
5) Which types of companies are most likely to use all or most of the IPO
proceeds for general corporate purposes (GCP)?
A. Founder-owned growth companies
B. PE-owned, former LBOs
C. Multi-generational family-owned companies
D. Mature high FCF-generating businesses
Initial Public Offerings Discussion Solutions
Initial Public Offerings Discussion Solutions
 
6) All of the following are key benefits of going public in making the IPO
decision EXCEPT
A. Access to public capital markets
B. Increased valuation transparency
C. Incremental one-time costs and ongoing expenses
D. Management and employee incentive packages
7) All of the following are key considerations to weigh against the benefits of
going public in making the IPO decision EXCEPT
A. Incremental one-time costs and ongoing expenses
B. Disclosure requirements
C. Increased valuation transparency
D. Public investor scrutiny
8) The typical IPO lockup period lasts
A. 30 days
B. 180 days
C. 15 days
D. 90 days
9) A primary share issuance refers to
A. First time shareholders sell their shares to the public
B. All first-time IPO share sales
C. Sale of shares via one of the primary stock exchanges
D. Sale of shares by the company to public shareholders
10) A secondary share issuance refers to
A. Additional share offerings following the initial IPO share sale
B. Share sales for second-time IPO launches
C. Share sales on second-tier global exchanges
D. Sale of shares by existing shareholders to the market
Initial Public Offerings 261
11) The lead bank underwriters tasked with running the IPO are known as
A. Bookrunners
B. Headliners
C. Senior analysts
D. Equity syndicate
12) Junior members of the bank underwriting group are known as
A. Syndicators
B. Co-managers
C. Sales