The Secrets of Wall St. Course – Securities Offering Document Production

Question 1 of 14

1. Question

The more experienced management teams have a greater probability of raising the needed capital, due to the nature of their personal and professional industry contacts.

True
False

Question 2 of 14

2. Question

Most investors want answers to the following questions.

a. What does your Company do, and why is it different from the competition?
b. Who are you?
c. What will you do with my investment?
d. How safe is my investment?
e. How do I get my investment back?
f. If the firm fails, what are my liquidation rights and lien position on assets?
g. If things go as planned, what will be the rate of return on my investment?
h. All the Above
i. None of the Above
j. Only a & b
k. Only a, b, c & d

Question 3 of 14

3. Question

It’s not necessary to have signed & dated, written engagement letters or executive compensation agreements before you add any management team member to the Red Herring document, because it’s not an official offering.

True
False

Question 4 of 14

4. Question

Only the CFO or VP of Finance can be compensated directly for soliciting and selling securities because their primary job is raising capital.

True
False

Question 5 of 14

5. Question

A detailed “Sources and Uses” statement and an “Estimated Use of Proceeds” statement must be in a securities-offering document.

True
False

Question 6 of 14

6. Question

You need the “Sources and Uses” statement to complete the “Notice of Sales” federal-and-state-filings requirement after each sale of your Company’s securities.

True
False

Question 7 of 14

7. Question

The greater the dilution of a security the greater the safety for the investor.

True
False

Question 8 of 14

8. Question

The greater the dilution of a security the greater the IRR for the investor.

True
False

Question 9 of 14

9. Question

The PPM’s Executive Summary is macro in nature, where the PPM’s body is detailed and micro in nature.

True
False

Question 10 of 14

10. Question

The Executive Summary would include summarizations of the main body of the PPM’s text on

a. The industry in which your Company will engage and compete.
b. The problems or changes within that industry that provide the opportunity to profit from selling your Company’s product and/or service line(s).
c. The solutions your Company’s product and/or service line(s) shall provide to solve those problems or address those changes.
d. The opportunity to profit from selling your Company’s product and/or service line(s) and for investors in terms of rate-of-return projections by investing in the securities to be offered by your Company.
e. The exit strategy for the investors.
f. All the Above
g. None of the Above
h. Only a & b
i. Only a & d

Question 11 of 14

11. Question

The greater the dilution of a security the greater the IRR for the Founders.

True
False

Question 12 of 14

12. Question

Most securities attorneys would prefer that you not project a rate of return on the securities offered by your Company.

True
False

Question 13 of 14

13. Question

In reality, if you do not provide IRR estimations, there is a virtually non-existent likelihood of attracting any meaningful amount of capital, which makes any increased probability of being sued “moot.”

True
False

Question 14 of 14

14. Question

Hybrid securities, such as; Convertible Seed Capital Notes and Convertible Participating Preferred Stock can provide for realistic exit strategies.

True
False

The Secrets of Wall St. Course – Securities Offering Document Production