Section 1 - Instruction

In the past few units, you learned about the differences between public and private markets, how companies use markets to raise capital, and how investors use them to build wealth. This lesson is designed to reinforce those crucial ideas.

Engagement Message

Think you can tell these core functions apart?

Section 2 - Practice

Type

Sort Into Boxes

Practice Question

Sort these features into the correct market type.

Labels

  • First Box Label: Public Markets
  • Second Box Label: Private Markets

First Box Items

  • High liquidity
  • Open to anyone
  • Regulated disclosure

Second Box Items

  • Low liquidity
  • Accredited investors
  • Limited disclosure
Section 3 - Practice

Type

Multiple Choice

Practice Question

A mature, profitable company decides to share some of its earnings directly with its shareholders every quarter. What is this payment called?

A. A capital gain B. An IPO C. A dividend D. A follow-on offering

Suggested Answers

  • A
  • B
  • C - Correct
  • D
Section 4 - Practice

Type

Fill In The Blanks

Markdown With Blanks

When a company first sells shares on a public exchange, it's called an [[blank:IPO]]. If it needs more money later, it can sell additional shares in a [[blank:follow-on]] offering. This process of raising money is known as capital [[blank:formation]].

Suggested Answers

  • IPO
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