Which of the Following Is Not a Source of Equity

question 74

Multiple Choice

Which of the following is not a source of equity financing?

• A) Reinvested profits
• B) Personal computer
• C) Personal vehicle
• D) Loan from a family member
• E) Venture capitalists

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Definitions:

Offer Price

The price at which a seller is willing to sell a security or asset, often differing from the bid or purchase price offered by a buyer.

Underwriters

Financial specialists who assess and take on certain risks by guaranteeing to pay a certain amount for securities offered by a corporation or government.

Best-efforts Offering

A type of securities underwriting where the underwriter agrees to sell as much of the offering as possible, but not to purchase the securities outright.

Syndicate

A group of individuals or organizations that come together to conduct business or pursue a common goal, often used in reference to investment and banking sectors.