Financial Markets and Institutions - Stock Offerings and Investor Monitoring

Vocabulary flashcards related to stock offerings and investor monitoring.

Private Equity

A business that is privately held and whose owners cannot sell their shares to the public.

Venture Capital Funds

Funds that receive money from wealthy investors and pension funds, investing for long-term periods.

Initial Public Offering (IPO)

A first-time offering of shares by a specific firm to the public.

Secondary Stock Offering

New stock from a firm that is already publicly traded, often used for expansion.

Prospectus

A document containing detailed information about a firm, including financial statements and risks, filed with the SEC.

Underwriter

A firm that helps with the prospectus and promotes the IPO to investors.

Flipping

A strategy where investors buy stock at the offer price and sell it shortly afterwards to capitalize on initial returns.

Lockup Period

A specified period during which original owners cannot sell their shares after an IPO.

Sarbanes-Oxley Act

An act that imposes regulations on public companies to ensure accurate audits and disclosures.

Shareholder Activism

Actions taken by shareholders to influence a corporation's behavior in a way that they believe will enhance shareholder value.