The financial institution that assists in the initial sale of securities in the primary is the. select one: a . stock exchange b . None of these c. Commercial Bank e. Investment Bank
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The financial institution that assists in the initial sale of securities in the primary is the.
select one:
a . stock exchange
b . None of these
c. Commercial Bank
e. Investment Bank
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Solved in 2 steps
- An important financial institution that assists in the initial sale of securities in the primary market is the investment bank. commercial bank. stock exchange. stock broker.Investment bank trade securities in the ? a. Secondary market b. Primary and secondary market c. Primary market d. Investment bank typacally do not trade securitiesThe Securities Exchange Act of 1934a. Regulates the public trading of previously issued securities through brokers and exchanges.b. Prohibits blue sky laws.c. Regulates the initial offering of securities by a company.d. Requires the registration of investment advisers.
- If an investment bank offers both underwriting/distribution functions and investment advisory or management functions, which situation would be acceptable under U.S. Securities and Exchange regulations and ethics guidelines with regard to material non-public information (MNPI)? Allowing MNPI acquired in the sell side of the business to influence the recommendations made by the buy side of the business. Trading of personal securities based on MNPI available only to the buy side of the business and not to the sell side due to a "wall." "Bringing someone over the wall" to provide value to underwriting, who does not comment on MNPI until it has been made public. Acquiring MNPI in the buy side of the business and disseminating it to the sell side of the business.Investment Banks operate and earn profits by: a) Purchasing undervalued securities on the market b) Creating and marketing new financial securities for issuers. c) Underwriting existing security issues, and selling them at a discount. d) Issuing stocks and bonds based on their own credit. e) Purchasing and reselling existing undervalued stocks and bonds. f) None of the other answers.The primary market is defined as The market for the exchange of securities that have already been issued by a firm. The market for insured securities. The over the counter market. The market for securities of the largest firms. The market for new issues.
- Which of the following statements is NOT true of PIPE transactions? In a PIPE transaction, investors purchase securities (equity or debt) directly from a publicly traded company in a private placement. PIPE transaction gives issuers faster access to capital. The securities are virtually always sold to the investors at a discount to the price at which they would sell in the public markets. PIPE transactions are registered with the SEC.A. Describe the differences in the underwriting process for an Investment Bank between a “firm commitment” securities offering and a “best efforts” offering. B. If you were the Chief Financial Officer of a public company that was issuing new common stock, which type of underwiring would you prefer, and why?Which of the following is the basis for fixing the price of securities in the financial market? a. Government b. Demand and Supply in the Market c. Seller of the Financial Instrument d. The issuer of the Instruments
- Choose the correct.The Securities Exchange Act of 1934:a. Regulates the public trading of previously issued securities through brokers and exchanges.b. Prohibits blue sky laws.c. Regulates the initial offering of securities by a company.d. Requires the registration of investment adviserswhich of the following instrument are traded in capital market. check all that apply A. commercial paper b. treasury bills c. cooperate bonds d. bankers appectances e. common stockAny person or entity engaged in the business of buying and selling securities for his own or its client’s account thereby making a profit from the difference between the purchase prices and selling price of securities. Investment Bank Brokers Commercial Bank Philippine Stock Exchange Inc.
