What is Oversubscription? Oversubscription is a situation where an Initial Public Offer (IPO) triggers more buyers than there are shares available. In other words, it is a condition where demand exceeds supply of shares. An oversubscription is a convenient indicator for underwriters to perform one of the following adjustments to their initial offer ...

What are the benefits to business in pursuing ethical business practices? Effect: Note the enormous size of the worlds largest companies. Profits and business ethics are not contradictory. That unethical behavior is a business liability. If ethical self-regulation does not guide business behavior sufficiently, legal regulation often follows quickly....

What is a Conversion Ratio? The conversion ratio refers to the number of shares that is obtainable after converting a certain denomination or convertible security into common shares. Hence, the conversion ration outlines the sum of common shares that was received or obtained after the conversion of a number of convertible securities.  Conversion rat...

What is the role of government with regard to individual ownership of property? The government establishes laws concerning property. More specifically, ownership of property depends upon legal recognition of ownership rights. The government establishes and enforces property ownership rights through a formalized system for recording and disclosure th...

What are Venture Capitalist and Capital Funds? Venture capital funds are pools of funding used to purchase equity interests in growth-based, startup ventures. The venture capitalist is the fund manager who raises funds (raises a fund) from investors seeking to allocate a portion of their investment portfolio to investing in higher-risk (and higher p...

What is the Build-Up Method of Valuation? In the "buildup method" valuation begins with the risk-free rate. The individual valuing the firm then makes the subjective determination of what percentage to add to the risk-free rate. The amount added depends upon the amount of risk associated with the business earnings. The value of the firm is calculate...

What is SEC Form S-4? Public or reporting companies must submit Form S-4 to the Securities and Exchange Commission (SEC) in case of mergers, acquisitions, or stock exchange offers. Mergers happen when companies want to expend, unite efforts, move into some new segments, or gain higher revenues and profits to maximize stakeholder value. Once merger i...

What is required to cancel an insurance contract? An insured may terminate an insurance policy at any time. Generally, it requires that the insured express intent to cancel the policy. This may include notifying the insurer in writing or discontinuing payment of premiums. If the insured stops paying the insurance premiums, the insurer must provide t...

What is the Code of Laws of the United States? The Office of the Law Revision Counsel of the U.S. House of Representatives codifies and consolidates the general and permanent federal statutes of the United States by its subjects in order to simplify the reading of the laws. This codified and consolidated compilation of the laws is known as the Unite...

What is the process for determining whether a descriptive mark is sufficiently distinctive? A descriptive mark must acquire a secondary meaning in order to be sufficiently distinctive to be protected by trademark law. Arbitrary, fanciful, and suggestive terms do not require that the mark have a secondary meaning, as they are sufficiently distinctive...