The JOBS Act and Issuance of Enabling Regulations by the Securities

question 40

True/False

The JOBS Act and issuance of enabling regulations by the Securities and Exchange Commission allows a start-up company to use crowdfunding to solicit accredited investors to invest in small and early-stage start-ups.

Analyze the impact of project investments on the value of equity using delta in options.

Understand the conversion mechanisms and pricing of convertible bonds.

Calculate the value of call and put options using underlying stock prices and strike prices.

Evaluate the factors affecting the floor value of convertible bonds.

---

Definitions:

Sales

Revenues earned by a company from the sale of goods or services before any expenses are deducted.

Accounts Payable

Short-term liabilities representing amounts owed by a business to suppliers or creditors for goods and services received.

Cost of Goods Sold

The immediate expenses related to manufacturing the products a company sells, such as materials and labor.

Inventory

A company's stock of goods or materials, held for sale or production.