I’m out of time and I need help – Please complete 10 of these questions, it is your choice which 10.
1. Why do corporations employ investment bankers?
2. Identify the primary market functions of investment bankers.
3. Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?
4. Brieﬂ y describe the process of competitive bidding and discuss its relative advantages and disadvantages.
5. Explain market stabilization.
6. Identify the costs associated with going public.
7. Brieﬂ y describe how investment banking is regulated.
8. Describe the inroads into investment banking being made by commercial banks.
9. In 2003, several investment banking ﬁrms were ﬁned $1.4 billion for ethics abuses related to the underwriting process. Will this be a deterrent for ethical lapses?
10. What were some of the reasons for the decline in Facebook’s stock price after its IPO?
11. What are some of the characteristics of an organized securities exchange?
12. Describe the types of members of the New York Stock Exchange (NYSE).
13. Why is there a difference between bid and ask prices at some point in time for a speciﬁ c security?
14. Describe the differences among the following three types of orders: market, limit, and stop loss.
15. What is a short sale?
16. Describe buying on margin.