Answer = a: The MD&A (Management Discussion & Analysis) section is management’s own assessment of the company.
Which of the following IPO Team Members is responsible for pricing the public offering?
Audit Firm
Answer = b: Underwriters typically set the price of the offering.
After filing the Registration Statement and addressing comments from the SEC, the company will launch an intense effort to reach potential investors in a series of face to face meetings, commonly referred to as the:
Closing Event
Answer = b: Road shows are intense face-to-face efforts at selling the public offering to potential investors.
It is not uncommon for the Lead Underwriter to carry an over-allotment of shares, allowing the Underwriter to purchase stock at the initial offering price after the company has gone public. This is referred to as a:
Underwriting Cushion
Answer = d: The Green Shoe Option allows the underwriter to purchase shares in an effort to support the offering price.
If for some reason the company decides to cancel the IPO and continue as a private company, then it must do so within ________ days of the final registration per Rule 155
60
45
30
90
Answer = c: 30 days
A direct approach to a public offering is available under:
Regulation S-K
Regulation D
Regulation S-1
Regulation X-4
Answer = b: Regulation D is used for public offerings to select groups where the amount raised is often for a project.
