In this chapter, we examine some of the ways in which firms actually raise capital. After studying this chapter, you should understand: The venture capital market and its role in the financing of new, highrisk ventures; how securities are sold to the public and the role of investment banks in the process; initial public offerings and some of the costs of going public; how rights are issued to existing shareholders and how to value those rights. | Lecture Fundamentals of corporate finance - Chapter 14 Cost of capital