Second-Stage Financing Occurs

question 95

Multiple Choice

Second-stage financing occurs:

• A) prior to the initial public offering.
• B) when company founders sell a portion of their shares.
• C) after the best efforts of the underwriters.
• D) when the IPO does not raise sufficient cash.

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Definitions:

Utility

In economics, a measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Satisfaction

The fulfillment of one's needs or the pleasure derived from consuming goods or services.

Consuming It

Pertains to the act of using up resources or products to satisfy needs or desires.

Ability

The possession of the means or skill to do something.