FIN 6100 EXAM 3 LATEST
What 3 requirements do exemptions help you avoid? - ANSWERS-1.
filing annual reports
2. shorter prospectus form
3. no annual audits.
What are 2 restrictions that come with expemtions? - ANSWERS-1.
limited number and type of investors
2. cap on money you can raise.
sources of exemptions? 5 - ANSWERS-1. private placements
2. intrastate offerings
3. Reg. A offerings
4. Reg B offerings
5. Crowdfunding
What 3 things do you need to be a qualified / sophisticated / accredited
investor? - ANSWERS-1. income greater than 200,000 per yr
2. net worth greater than 1 Mil
3. director, officer, or partner of the firm offering the securities.
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, FIN 6100 EXAM 3 LATEST
What is a private placement exemption? 3 - ANSWERS-- most common
form
- sells majority of stock to a small number of buyers
- not tradable on the secondary market.
What is a intrastate offering exemption? - ANSWERS-allows you to
raise money within your state and only in your state.
Makes it so you are only subject to state regulations.
What are Venture Capital Funds? - ANSWERS-alternative investment
opportunities for those willing to take on more risk for larger potential
rewards.
How are VCs structured? (2) - ANSWERS-short-term, 10 years
small group of general partners. fund, exit, fund.
What is the difference between General and Limited partners in a VC?
(2,2) - ANSWERS-general:
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2
, FIN 6100 EXAM 3 LATEST
- make the decisions, hold the liability
- 2/20 arrangement.
Limited:
- no control, no liability
- promise to give money in funding commitment.
Lifecycle of VC (3) - ANSWERS-1-3 yrs: raise money, find projects to
invest in.
4-5yrs: grow portfolio
last 3 yrs: harvest investment
What is the preferred exit for a VC? - ANSWERS-an IPO.
second option is a merger or sale of the company.
Pros and cons of a VC (2,3) - ANSWERS-pros:
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3
What 3 requirements do exemptions help you avoid? - ANSWERS-1.
filing annual reports
2. shorter prospectus form
3. no annual audits.
What are 2 restrictions that come with expemtions? - ANSWERS-1.
limited number and type of investors
2. cap on money you can raise.
sources of exemptions? 5 - ANSWERS-1. private placements
2. intrastate offerings
3. Reg. A offerings
4. Reg B offerings
5. Crowdfunding
What 3 things do you need to be a qualified / sophisticated / accredited
investor? - ANSWERS-1. income greater than 200,000 per yr
2. net worth greater than 1 Mil
3. director, officer, or partner of the firm offering the securities.
END OF
PAGE
1
, FIN 6100 EXAM 3 LATEST
What is a private placement exemption? 3 - ANSWERS-- most common
form
- sells majority of stock to a small number of buyers
- not tradable on the secondary market.
What is a intrastate offering exemption? - ANSWERS-allows you to
raise money within your state and only in your state.
Makes it so you are only subject to state regulations.
What are Venture Capital Funds? - ANSWERS-alternative investment
opportunities for those willing to take on more risk for larger potential
rewards.
How are VCs structured? (2) - ANSWERS-short-term, 10 years
small group of general partners. fund, exit, fund.
What is the difference between General and Limited partners in a VC?
(2,2) - ANSWERS-general:
END OF
PAGE
2
, FIN 6100 EXAM 3 LATEST
- make the decisions, hold the liability
- 2/20 arrangement.
Limited:
- no control, no liability
- promise to give money in funding commitment.
Lifecycle of VC (3) - ANSWERS-1-3 yrs: raise money, find projects to
invest in.
4-5yrs: grow portfolio
last 3 yrs: harvest investment
What is the preferred exit for a VC? - ANSWERS-an IPO.
second option is a merger or sale of the company.
Pros and cons of a VC (2,3) - ANSWERS-pros:
END OF
PAGE
3
