Upon successful completion of this module, the student will be able to:

• Understand how venture capital firms design successful deals.
• Understand how firms make initial public offerings and the costs of such offerings.
• Know what is involved when established firms make a general cash offer or a private placement of securities.
• Explain the role of the underwriter in an issue of securities.
• Describe the terms of a rights issue.

3.2- Reading:-

Read the following to prepare for this week:

• Chapter 15
• [Selected Company] Prospectus at http://www.sec.gov/edgar/searchedgar/companysearch.html
• [Selected Company] First Form 10-K post-IPO at http://www.sec.gov/edgar/searchedgar/companysearch.html
• How to Value Stocks: Introduction to Valuation Methods
• Investment Valuation: A Little Theory

3.3 -Test your Knowledge (Question):

Q- How do firms make initial public offerings and what are the costs of such offerings? (Word Limit- 150 to 200 words)

3.4 Instructions:-

• Answer the question in test your knowledge section.
• Post your answer in the discussion board using the discussion link available at BB (Week 3: Interactive learning