FQR Corp. is a software developer that has been successfully operating for the past eight years and are now wanting to expand operations. The directors are considering issuing shares to raise the required capital. Currently, management owns 75% of the outstanding shares of the company. The board directors is considering taking the company public since it wants to raise sufficient funds to acquire companies and expand its product lines. However, before the final decision is made, the directors have some questions. Required: Answer the following questions raised by the directors. 1. In which financial market will FQR issue its shares and what is the role of the underwriter in this process? How much in proceeds would FQR receive on initial issue of shares and on subsequent sales of shares by investors? 2. Which market could the current shareholders use to change their proportionate ownership if FQR goes public? How are prices set in this market? 3. If FQR cannot meet the listing requirements because it is considered too small, is there any other market that could be used by shareholders to sell their shares? If so, how does this market work? 4. If FQR goes public, how would the provincial securities regulator review the company, management, and its shareholders?