Question

Consider a state-of-the-art 3D printing idea that involves using hundreds of high-performance cameras to 3D print any sort of object with high precision. The brain behind the idea, Simone, needs to raise money in order to finance the creation and expansion of the business that she plans to call 3D Ltd.Simone decides to raise money through public equity investments.

Which of the following are examples of public equity investments? Check all that apply.
a) Simone issues common stock on the New York Stock Exchange in the amount of $170 million.
b) Simone gets a venture capital fund to invest $5 million in the business.
c) Simone issues preferred stock on the New York Stock Exchange in the amount of $130 million.
d) Simone invests $500,000 of her own money in the business.

Answer 1

Examples of public equity investments for Simone's business include issuing common stock and preferred stock on the New York Stock Exchange.

Step-by-step explanation:

To finance the creation and expansion of Simone's 3D printing business, 3D Ltd., public equity investments can be utilized. Public equity investments involve raising capital from the general public through the issuance of stocks which are bought and sold on a stock exchange. Examples of public equity investments applicable to Simone's case include:

• Issuing common stock on the New York Stock Exchange in the amount of $170 million.
• Issuing preferred stock on the New York Stock Exchange in the amount of $130 million.

On the other hand, getting a venture capital fund to invest or investing personal funds do not qualify as public equity investment since venture capital is a form of private equity and personal investment is an individual financial contribution.