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Name: _____________________________________________________________________________
HealnnHeals Goes Public! Read the article HealnnHeels Goes Public! Answer the questions below: 1. HealnnHeels was assigned a stock symbol HnnH. What is another name for a stock symbol? _ ______________________________________________________________________________ 2. What did Chris mean when he said the company will “list” their shares with the NYSE? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 3. What does IPO stand for? _ ______________________________________________________________________________ 4. What is HnnH’s reason for going public? Why would any corporation want to go public? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 5. When Claire the Engineer referred to “the SEC” what or who did she mean? _ ______________________________________________________________________________ 6. Amir the Engineer said that “HnnH’s financial information will remain private, as always” Once HnnH goes public, will it be able to keep its financial information private, as Amir hopes? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 7. M.E. Getritch of Germany bought 1000 shares of HnnH stock. She expects to receive quarterly interest payments until the maturity date in 10 years. What is wrong with these expectations? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 8. Ima N. Vester bought 500 shares of HnnH stock. Will he receive a dividend? How will he make money on his investment? _ _____________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ ticker symbol Initial Public Offering Securities and Exchange Commission HnnH has been approved as a member of the NYSE which enables it to offer its shares for sale on that exchange . To raise capital to enable growth of the company and expansion of their product line . Companies go public to raise capital by selling shares to the public. No. Once a company goes public its shares and financial affairs are no longer private . The shareholders have a right to know! Stock is not debt, so It does not pay interest. There is no “maturity date” for shares. If the HnnH board of directors' declares a dividend, he will share in a portion of the profits according to his percentage of ownership of shares. Whether or not he makes any money on his investment depends on whether the company is profitable and the shares’ value increase . PRODUCT PREVIEW
Lesson 14 | Who Put the Wall in Wall Street? 268
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