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