Please define the following:
1. What is an efficient market?
2. What does the efficient markets hypothesis imply for corporate financial management
3. The underwriting process and the functions of investment banking
4. Private placement vs. public offering.
5. Shelf registration vs. traditional underwriting.
6. Negotiated sale vs. competitive bidding.
7. Firm commitment (fully underwritten issue) vs. best efforts.
8. Initial public offerings (IPOs) – How do they perform? Why are they underpriced?
9. Why might be the cause of hot new-issue periods (cycles)?
10. The issue (flotation or issue) costs: What are they? Are they the same for selling stocks, bonds, etc.?
11. Stock warrant vs. call option. (Warrants are long term options sold by corporations; options are sold by anyone and are short-term.)
12. What is a debenture bond? A subordinated debt (bond)? A mortgage bond? A callable bond? A Convertible bond?
13. What is Hedging, Insuring, and Diversifying? Also call and put options.