Podcast
Questions and Answers
What is the purpose of applying to have a stock listed on a physical stock exchange?
What is the purpose of applying to have a stock listed on a physical stock exchange?
- To reduce the issuance costs
- To increase the value of the stock
- To guarantee the sale of the stock
- To meet the exchange's minimum requirements (correct)
In an Underwritten Arrangement, what does an investment bank do?
In an Underwritten Arrangement, what does an investment bank do?
- Guarantees the sale by purchasing the securities from the issuer (correct)
- Acts as a consultant only
- Buys securities at a discount
- Gives no guarantee that the securities will be sold
What role does an Investment Banker play in the process of raising capital?
What role does an Investment Banker play in the process of raising capital?
- Creates securities for personal investment
- Acts as a watchdog for insider trading
- Sells securities to investors directly
- Helps corporations design securities attractive to investors (correct)
What is the main function of the Securities and Exchange Commission (SEC)?
What is the main function of the Securities and Exchange Commission (SEC)?
What distinguishes an auction market from other types of markets?
What distinguishes an auction market from other types of markets?
What process involves deciding on the dollars to be raised and type of securities used?
What process involves deciding on the dollars to be raised and type of securities used?
What is the role of the lead underwriter in a new security offering?
What is the role of the lead underwriter in a new security offering?
What is the primary function of financial intermediaries according to the text?
What is the primary function of financial intermediaries according to the text?
Which type of risk refers to the potential loss due to exchange rate fluctuations?
Which type of risk refers to the potential loss due to exchange rate fluctuations?
What is the responsibility of an underwriting syndicate in the issuance of new securities?
What is the responsibility of an underwriting syndicate in the issuance of new securities?
Which type of risk arises due to fluctuations that affect financial instruments and investment decisions?
Which type of risk arises due to fluctuations that affect financial instruments and investment decisions?
What does liquidity risk refer to?
What does liquidity risk refer to?
