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Ch 2: The New Issues Market

About This Chapter

This chapter helps you prepare to answer questions about the process, rules, and requirements for bringing new issues to market. You'll review key terms and concepts from the regulatory requirements for Initial Public Offerings (IPOs) to the rules and regulations for the delivery of the prospectus.

The New Issues Market - Chapter Summary

Properly educate yourself on how to bring new issues to market by spending time in this detailed chapter. Don't miss important information such as the how financial syndicates are formed, and how they operate. Be sure you understand what a Preliminary Official Statement is and how it works in a new issue. Study the key components of understanding the underwriters' spread, compensation, and selling practices. When you've covered all of the lessons in this chapter, you will be able to:

  • Explain the components of a financial prospectus, and give examples
  • Define the Notice of Sale for municipal securities
  • Understand the components of and primary financing for municipal securities
  • Recognize the main parts of registration statements and offering materials for new issues
  • Compare and contrast Qualified Institutional Buyers (QIB) and Accredited Investors

Our professional instructors have taken the complex topic of the new issues market and broken it down into easy-to-follow lessons. Each lesson highlights key topics, and is followed by a self-assessment to help you gauge your learning. Once you complete all of the lessons, try the chapter-end quiz to see if you're on track.

11 Lessons in Chapter 2: The New Issues Market
Test your knowledge with a 30-question chapter practice test
The Process for Bringing New Issues to Market

1. The Process for Bringing New Issues to Market

Corporations at some point want to raise money from public markets. This lesson discusses the process and steps that a company must follow to register and sell a new issuance of stocks or bonds to public investors.

Regulatory Requirements for Initial Public Offerings (IPOs)

2. Regulatory Requirements for Initial Public Offerings (IPOs)

Companies wanting to do an initial public offering must follow certain regulations to do so. This lesson discusses those regulations as well as illegal communications security brokers need to avoid in soliciting sales.

Financial Syndicates: Formation & Operational Procedures

3. Financial Syndicates: Formation & Operational Procedures

For most stock and bond offerings, the lead underwriter forms an underwriting syndicate with other brokers in order to market the offering. This lesson discusses the formation of a syndicate and explains how a syndicate operates.

What Is a Preliminary Official Statement (POS)?

4. What Is a Preliminary Official Statement (POS)?

How can someone decide whether to invest in a government-issued bond? In this lesson, we'll look at official and preliminary official statements, including what they are and how they can attract and inform investors.

Financial Prospectus: Definition, Components & Examples

5. Financial Prospectus: Definition, Components & Examples

A financial prospectus is a legal document that provides a lot of financial, company, and transaction information for prospective investors to decide whether or not they want to invest.

Delivery of Prospectus: Rules & Requirements

6. Delivery of Prospectus: Rules & Requirements

A prospectus must be given to investors prior to investing in many different situations in the investment industry. This lesson discusses the rules pertaining to delivering prospectuses to investors.

Notice of Sale for Municipal Securities: Definition & Components

7. Notice of Sale for Municipal Securities: Definition & Components

Municipal bond offerings are done by state, city and county governments. A notice of sale must be prepared and submitted containing the details of the issuance. This lesson discusses municipal bonds and the information in the notice of sale.

Primary Financing for Municipal Securities

8. Primary Financing for Municipal Securities

Municipal securities raise primary funds for public projects. Methods include competitive sales, negotiated sales, and private offerings. Advanced funding is used to pay off bonds with another bond. Learn about these methods in this lesson.

Registration Statements & Offering Materials for New Issues

9. Registration Statements & Offering Materials for New Issues

A new public offering is always an interesting experience to those who are participating. There are so many details that have to be planned and requirements to be met for an offering to be a success.

Underwriters' Spread, Compensation & Selling Practices

10. Underwriters' Spread, Compensation & Selling Practices

Investment brokers are involved in public offerings of corporate stocks and bonds for fees and compensation for selling the securities being offered. This lesson discusses the forms of compensation received.

Qualified Institutional Buyers (QIB) vs. Accredited Investors

11. Qualified Institutional Buyers (QIB) vs. Accredited Investors

Opportunities abound in investment markets to buy private securities or invest in risky ventures. Individuals and companies who are knowledgeable about risk are permitted under government regulations to invest in risky types of securities.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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