Explain the role of investment bankers and brokerage firms in the issuance of new securities
What will be an ideal response?
Answer: An investment banker assumes the role of the underwriter and bears the risk of reselling the securities purchased from an issuing corporation. The investment banker earns a profit by reselling at a price higher than the price paid to the issuer. Brokerage firms form a selling group with each firm accepting responsibility for selling a portion of the newly issued securities. The brokerage firms also earn a profit if they can resell the shares at a price higher than their purchase price.
Learning Outcome: F-01 Describe the different financial markets and the role of the financial managers
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An important element of ethical/moral leadership involves serving ______.
a. one’s own interests as leader b. one’s own self-interests c. the interests of others d. the interests of whomever is most important
What type of research is being used when gathering data from structured survey responses that are numerical in nature?
A) Qualitative B) Secondary C) Tertiary D) Observational E) Quantitative
The current classification of organizations into departments like Accounting and Human Resources shows how the organizational structure evolved by breaking complex tasks into smaller, manageable tasks
Indicate whether the statement is true or false
As product adopters, members of the early majority
A. are leaders in social settings and have a slightly above average education. B. are skeptical and have below average social status. C. are venturesome, highly educated, and use multiple information sources. D. are deliberate and use many informal social contacts. E. have a fear of debt and use neighbors and friends as information sources.