1. Boundless Lecture Slides Free to share, print, make copies and changes. Get yours at www.boundless.com Available on the Boundless Teaching Platform

2. Using Boundless Presentations The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. Free to share, print, make copies and changes. Get yours at www.boundless.com Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: If you have any questions or problems please email: educators@boundless.com http://boundless.com/teaching-platform

3. Boundless is an innovative technology company making education more affordable and accessible for students everywhere. The company creates the world’s best open educational content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless integrates learning technology into all its premium books to help students study more efficiently at a fraction of the cost of traditional textbooks. The company also empowers educators to engage their students more effectively through customizable books and intuitive teaching tools as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free and premium content each month across the company’s wide distribution platforms, including its website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with Boundless, visit boundless.com.boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com About Boundless

4. Defining Spread Pricing a Security Shelf Registration Distributing Stock Obtaining Capital: Methods of Long-Term Financing > Distributing Stock Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance?campaign_content=book_192_section_111&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=di rect&utm_source=boundless

5. The party that initiates the trade is the liquidity demander who pays the spread. The counterparty is the liquidity supplier who earns the spread. Liquidity suppliers use limit orders. A limit order is when the buyer waits until the stock reaches a designated price. The spread is one component of transaction cost, which along with brokerage fees, reflects the cost of making an instantaneous trade. Defining Spread Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/obtaining-capital-methods-of-long-term-financing-14/distributing-stock- 111/defining-spread-469- 3791?campaign_content=book_192_section_111&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boun dless Signals from dividend policy may give clues about stocks. View on Boundless.com Obtaining Capital: Methods of Long-Term Financing > Distributing Stock

6. Several methods are used to determine the value of a company including Present Value, Comparable Company Analysis, and Net Asset Value. The goal of each of these methods is to determine the worth of a potential investment in the company. Financial analysis of this sort determines what investors are willing to pay for a given security because it is what they think the security is worth. If most investors think a stock is worth a lot, or will be in the future, they buy it and this demand drives price up. The opposite occurs if investors are not confident about the stock. Therefore, stock price reflects investor expectations. Pricing a Security Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/obtaining-capital-methods-of-long-term-financing-14/distributing-stock- 111/pricing-a-security-470- 3790?campaign_content=book_192_section_111&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boun dless Price View on Boundless.com Obtaining Capital: Methods of Long-Term Financing > Distributing Stock

7. A company can file a shelf registration statement with a prospectus that offers different classes of securities. It can then sell all, none, or some of the classes at any time. Regulators generally grant shelf registration to companies that are reliable. They also require a statement of material changes in business since the prospectus was filed before each security is actually sold. Shelf registration can be used by a company as a strategy to quickly sell securities for funds when market conditions become favorable. Shelf Registration Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/obtaining-capital-methods-of-long-term-financing-14/distributing-stock- 111/shelf-registration-471- 5149?campaign_content=book_192_section_111&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boun dless Shelf Registration View on Boundless.com Obtaining Capital: Methods of Long-Term Financing > Distributing Stock

8. Free to share, print, make copies and changes. Get yours at www.boundless.com Appendix

9. Key terms liquidity Availability of cash over short term: ability to service short-term debt. prospectus A document that describes a proposed endeavor (venture, undertaking) such as a literary work (which one proposes to write). security proof of ownership of stocks, bonds, or other investment instruments.W tender offer an invitation to shareholders of a corporation to exchange their shares in return for a monetary buy-out Free to share, print, make copies and changes. Get yours at www.boundless.com Obtaining Capital: Methods of Long-Term Financing

10. Signals from dividend policy may give clues about stocks. The spread measures the cost of executing an instant trade. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Wikimedia." CC BY-SA http://wikimedia.org View on Boundless.comCC BY-SAhttp://wikimedia.orgView on Boundless.com Obtaining Capital: Methods of Long-Term Financing

11. Shelf Registration Some of the securities in the prospectus can be "shelved," and sold later. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Book Shelf." Public domain http://commons.wikimedia.org/wiki/File:Book_Shelf.JPG View on Boundless.comPublic domainhttp://commons.wikimedia.org/wiki/File:Book_Shelf.JPGView on Boundless.com Obtaining Capital: Methods of Long-Term Financing

12. Price Price fluctuates depending on how the market values the security. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia. "Silver price." Public domain http://commons.wikimedia.org/wiki/File:Silver_price.png View on Boundless.comPublic domainhttp://commons.wikimedia.org/wiki/File:Silver_price.pngView on Boundless.com Obtaining Capital: Methods of Long-Term Financing

13. Free to share, print, make copies and changes. Get yours at www.boundless.com Obtaining Capital: Methods of Long-Term Financing Which of the following statement regarding stock "spread" is correct? A) The bid-offer spread is the difference between the prices quoted for sale and for purchase. B) A trader initiating a transaction is said to supply liquidity; the counterparty demands liquidity C) A stock's bid-offer spread is the sole component of a transaction cost. D) All of these answers.

14. Free to share, print, make copies and changes. Get yours at www.boundless.comwww.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/CC BY-SA 3.0http://www.boundless.com/ Obtaining Capital: Methods of Long-Term Financing Which of the following statement regarding stock "spread" is correct? A) The bid-offer spread is the difference between the prices quoted for sale and for purchase. B) A trader initiating a transaction is said to supply liquidity; the counterparty demands liquidity C) A stock's bid-offer spread is the sole component of a transaction cost. D) All of these answers.

15. Free to share, print, make copies and changes. Get yours at www.boundless.com Obtaining Capital: Methods of Long-Term Financing Which of the following correctly defines a method used to value a company's securities? A) A company's net asset value equals the market value of a company's assets minus its liabilities. B) All of these answers. C) Comparable company analysis determines a firm's value by observing the prices of similar companies. D) Present value determines a company's stock price using the firm's projected cash flows.

16. Free to share, print, make copies and changes. Get yours at www.boundless.comwww.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/CC BY-SA 3.0http://www.boundless.com/ Obtaining Capital: Methods of Long-Term Financing Which of the following correctly defines a method used to value a company's securities? A) A company's net asset value equals the market value of a company's assets minus its liabilities. B) All of these answers. C) Comparable company analysis determines a firm's value by observing the prices of similar companies. D) Present value determines a company's stock price using the firm's projected cash flows.

17. Free to share, print, make copies and changes. Get yours at www.boundless.com Obtaining Capital: Methods of Long-Term Financing Which of the following statements regarding shelf registration is true? A) Shelf registration is available to any business, but are examined rigorously. B) Shelf registration is for new issues, must be prepared up to five years in advance. C) Once the application is filed, a business does not make any additional filings prior to the sale. D) Shelf registration allows a company to sell securities without a separate prospectus for each offering.

18. Free to share, print, make copies and changes. Get yours at www.boundless.comwww.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/CC BY-SA 3.0http://www.boundless.com/ Obtaining Capital: Methods of Long-Term Financing Which of the following statements regarding shelf registration is true? A) Shelf registration is available to any business, but are examined rigorously. B) Shelf registration is for new issues, must be prepared up to five years in advance. C) Once the application is filed, a business does not make any additional filings prior to the sale. D) Shelf registration allows a company to sell securities without a separate prospectus for each offering.

19. Attribution Wikipedia. "Valuation (finance)." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Valuation_%2528finance%2529CC BY-SA 3.0http://en.wikipedia.org/wiki/Valuation_%2528finance%2529 Wiktionary. "security." CC BY-SA 3.0 http://en.wiktionary.org/wiki/securityCC BY-SA 3.0http://en.wiktionary.org/wiki/security Wikipedia. "Bid–offer spread." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Bid%25E2%2580%2593offer_spreadCC BY-SA 3.0http://en.wikipedia.org/wiki/Bid%25E2%2580%2593offer_spread U.S. Securities and Exchange Council. "Limit Orders." Public domain http://www.sec.gov/answers/limit.htmPublic domainhttp://www.sec.gov/answers/limit.htm Wiktionary. "tender offer." CC BY-SA 3.0 http://en.wiktionary.org/wiki/tender+offerCC BY-SA 3.0http://en.wiktionary.org/wiki/tender+offer Wiktionary. "liquidity." CC BY-SA 3.0 http://en.wiktionary.org/wiki/liquidityCC BY-SA 3.0http://en.wiktionary.org/wiki/liquidity Wikipedia. "Shelf registration." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Shelf_registrationCC BY-SA 3.0http://en.wikipedia.org/wiki/Shelf_registration Wiktionary. "prospectus." CC BY-SA 3.0 http://en.wiktionary.org/wiki/prospectusCC BY-SA 3.0http://en.wiktionary.org/wiki/prospectus Free to share, print, make copies and changes. Get yours at www.boundless.com Obtaining Capital: Methods of Long-Term Financing