7.2 Participants in the Primary Market
A select pair or group of companies organized to underwrite corporate or municipal securities is best known as
a syndicate
Which type of underwriting is characterized by the broker-dealer buying the entire issue from the issuer and then reoffering it to the public?
firm commitment
In an underwriting where fixing a minimum dollar amount to be sold in order to move forward with the entire offering is most commonly referred to as
mini-max
Primary market transactions would include which of the following
sale of $10 million of corporate bond by a broker-dealer acting as an underwriter
which of the following would take place in the primary market
securities sold to the public by the issuer
certain investors are deemed accredited when they have a net worth of
$1 million, not including equity in the primary residence
Underwriters acting as principals and committing to purchase any unsold shares for the syndicate account would best be described as being engaged in
a firm commitment
A person who looks to provide advice to a city government concerning the issuance of municipal debt securities would best be described as
a municipal advisor
A municipal advisor does which of the following activities
advises municipalities on selling securities
A corporate issuer of common stock has decided that it wants an agreement that its underwriter must either raise all of the capital needed or cancel the underwriting. To best accommodate this the underwriting should be
an all or none (AON)
A company that offers sales of another company's securities in a primary market transacion would best be described as
an underwriter
Which of the following calls for the underwriters to buy securities from the issuer acting as an agent, not as principal?
best efforts underwriting
Capital markets can be characterized by all of the following except
they are utilized by the public sector only