FIL 240 Lecture 20 Outline of Last Lecture I Definition of a bond a Retirement of a bond b Sinking fund provision c Serial Bond d Straight bond e Callable Bond f Putable Bond g Convertible Bond h Variable rate Bond i Index Bonds j STRIP bonds k Yankee Bonds II Mortgage Bonds vs Debenture a Definition of mortgage bonds b Definition of debenture bonds III Senior vs Subordinate Bonds a Definition of senior bonds b Definition of subordinate bonds IV Indenture Agreement a Restrictive covenant Outline of Current Lecture Common Stock I Investments a IPO b Regulation D exemptions c Regulation A exemptions II 1933 Registration Statement a Forms III Registration statement a Prospectus b Underwriters c Sindicit d Best Efforts e Self underwriting These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute IV Common stock a Rules Current Lecture Common Stock I II III Investments a IPO Initial Public Offering 1st offering i Public offering after IPO is a bad sign ii Selling common stock is bad 1 Have to pay the broker floatation cost 2 Finding other people to be owners people buying stock so you can get more money 3 Price decreases when SUP increases when stock is sold at ticker price the actual price the company should be at increases iii Securities of 1933 governs all public offerings all laws about issuing stock iv Securities of 1934 exchanging and buying stock that is already issued b Regulation D Exemptions without having to go through everything i 504 free to exchange freely tradable ii 506 505 rich people generate restricted stock not freely tradable subject to rule 144 c Regulation A Exemptions restricted stock 1933 Registration Statement here we are at beginning a 1 Form S 1 Form SB 1 Form SB 2 Small business Form 10 Make restricted publicly tradable 2 Form 10K annually management discussion analysis 10Q quarterly 8K when something important happens Registration Statement a Prospectus stuff in the middle i Selling doc black read it and then buy handout red ii Tombstone we are selling this doc and come look at Prospectus b Underwriters firm commitment c Sindicit primary market I you or us t lead investment bank d Best Efforts sindicit will do the best to sell the share we will give it our best effort if you give us 10 000 shares of stock e Self underwriting sell it yourself stock IV Common Stock a Rules i 1 share 1 vote for directors ii Freely traded iii Restricted iv Class A ava only to family of founder increased voting rights
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