COMMERCE 3FA3 Chapter Notes - Chapter 15: Exit Strategy, Underwriting, Multiunit Auction

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 3FA3
• Professor: Anwar Husain

Document Summary

Invest theor own money; so-called angels are usually individual investors. Vc firms specialize in getting money from many soucres and investing them. A venture capitalist will look for 40% or more of the eqt. When choosing a venture capitalist: financial strength is impt, style is impt, references are impt, contacts are impt, exit strategy is impt. Refers to the creation and sale of securities on public markets. Steps involved when issuing securities to the public: mgmt. must obtain approval from the bod to issue securities, firm must prepare and hand out copies of preliminary prospectus to osc and to potential investors. The preliminary pospectus is sometimes called a red herring. (cid:1007). O(cid:374)(cid:272)e re(cid:448)ised a(cid:374)d fi(cid:374)al prospe(cid:272)tus is (cid:373)et (cid:449)ith o c (cid:858)s appro(cid:448)al, a pro(cid:272)e is deter(cid:373)i(cid:374)es a(cid:374)d selling efforts commence. Sales; a general cash offer and a rights offer.