Companies issuing stock to the public have to aware of certain terms. Using complete sentences define the following:a) Comment Letter. b) Preliminary Prospectus. c) Shelf Registration.
What will be an ideal response?
a) A comment letter is issued by the SEC to specify deficiencies that must be corrected prior to the security being offered for sale.
b) A preliminary prospectus, also referred to as a red herring, provides tentative information to investors about an upcoming issue.
c) The shelf registration allows a company with stock actively traded to establish a registration statement which can be updated in a short period of time, 2 or 3 days, and then issue more stock. The shelf registration is limited to 10 percent of the company's currently outstanding stock. A company may in this manner choose an optimal period in which to sell more stock.
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A company enters into a futures contract with the intent of hedging an account payable of DM350,000 due on December 31 . The contract requires that if the U.S. dollar value of DM350,000 is greater than $175,000 on December 31 . the company will be required to pay the difference. Alternatively, if the U.S. dollar value is less than $175,000, the company will receive the difference. Which of the
following statements is correct regarding this contract? a. The Deutsche mark futures contract effectively hedges against the effect of exchange rate changes on the U.S. dollar value of the Deutsche mark payable. b. The futures contract is a contract to buy Deutsche marks at a fixed price. c. The futures contract is a contract to sell Deutsche marks at a fixed price. d. The contract obligates the company to pay if the value of the U.S. dollar increases.
Describe how the expectancy theory of motivation predicts effort.
What will be an ideal response?
A study by Holiday Inn actually showed that as the number of defects per hotel increase, the amount of revenue per room increases
Indicate whether the statement is true or false
__________is an emerging trend that employs market data to best serve customers as they prepare to make a purchase. ANSWER: Shopper marketing
Fill in the blanks with correct word.