Ünite Sınavı Soruları

I. Private placement

II. Firm commitment

III. Best efforts 

Which of above is among the practices where securities are sold to a limited number of investors?

“… is just a temporary loan until permanent financing is obtained. “

Which of the following would best fill the blank space above?

The fee earned from underwriting a security is the difference between the price paid to the issuer and the price at which the investment-banking firm reoffers the security to the public. Which of the below is the term used for this difference?

Which one of the following must be presented to investors by law?

Which of the below is the term that can also be used instead of initial public offering?

Investment banking firms may suggest that some of a target corporation’s divisions will not be compatible with the acquirer’s operations. Thus, after a target corporation is acquired, some of its individual divisions may be sold. What is this process called?

Which of the below is the term used when the sales agents have not been able to generate enough interest in the security among their clients to sell all of the securities by the issue date?

I. Bringing new securities to markets

II. Deal making in the mergers and acquisitions

III. Advising corporations

IV. Taking in deposits and lending them out

Which of the above are the primary functions of investment banks?

I. The type of the security
II. The size of the offering
III. The risk taken by the investment-banking firm
IV. Underwriting costs

Which of the above affects the size of the gross spread? 

Which of the below is not true for investment banks regarding Mergers and Acquisitions?

Which of the below cannot be said about public offerings?

1. Investment banks' main job is marketing securities and dealing with the securities markets.
2. Investment bankers act as intermediaries between corporations or governments and the general public when corporations or governments want to raise capital.
3. In the indirect credit market, investment banks are the most important participants;

Which of the statements above is/are true for investment banking?

Gross spread divided by the IPO price equals to gross spread ratio. 

Company A receives $12 per share for its initial public offering whereas the underwriters sell the stock to the public at $14 per share. What is the gross spread ratio in this example? 

The fee earned from underwriting a security is the difference between the price paid to the issuer and the price at which the investment-banking firm reoffers the security to the public. What is this difference called?

Which of the following are institutions that are allowed to accept deposits, make loans, underwrite securities, engage in brokerage activities, and sell and manufacture many other financial services such as insurance?

Which of the following can be defined as just a temporary loan until permanent financing is obtained?

1. Bringing new securities to market
2. Deal making in the mergers and acquisitions
3. Advising corporations

Which of the functions stated above is/are one of the distinctive primary market functions of investments banks?

Which of the following bank is forced by Fed into the arms of JP Morgan to avoid a bankruptcy?

After a target corporation is acquired, some of its individual divisions may be sold. Which of the below is the term used for it?

What is the term for structures that investment banks form when it is a big risk for them to undertake selling of securities?