The Two-Way Flow of Communication Between a Buyer and a Seller

question 5

Multiple Choice

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision is called:

• A)catalogues.
• B)direct mail.
• C)DRTV.
• D)kiosks.
• E)personal selling.

Understand the concept of equity carve-outs and their impact on public stockholders.

Recognize the process and benefits of going public for companies.

Know the mechanisms and significance of using a shelf prospectus in securities issuance.

Realize the role and impact of venture capital funding for start-ups.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond, share of stock, or other security, typically set at the time of issuance and used to calculate dividends or interest.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.