1. Explain the relationships among authorized shares, outstanding shares, treasury stock, and issued shares.
2. What are the advantages to both U.S.-based and foreign corporations of issuing stock outside their home markets? What are American depositary receipts (ADRs)? What are American depositary shares (ADSs)?
3. What is the difference between a venture capitalist (VC)and an angel capitalist (angel)?
4. What are the four ways that VCs are most commonly organized? How are their deals structured and priced?
5. What general procedures must a private firm follow to go public via an initial public offering (IPO)?
6. Compare the following risk preferences:
(a) risk averse,
(b) risk neutral, and (c)risk seeking. Which risk preference is most common among financial managers.