Money Banking and the Financial System 3E - Hubbard - TB chapter 11

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1、Money,Banking,andtheFinancialSystem,3e(Hubbard/O'Brien)Chapter11BeyondCommercialBanks:ShadowBanksandNonbankFinancialInstitutions11.1InvestmentBanking1)Whichtypeofofferingtypicallyhasthelowestfees?A)initialpublicofferingofstocksB)secondaryofferingC)offeringofinvestment-gradebondsD)offeri

2、ngofnon-investment-gradebondsAnswer:CDiff:1PageRef:346Topic:investmentbanksObjective:Explainhowinvestmentbanksoperate*:RecurringAACSB:ReflectiveThinking2)UnderwritinginvolvesA)insuringthelifeorhealthofindividuals.B)guaranteeingapricefornewcapitaltotheissuingfirm.C)sellingstockmorecheapl

3、ythanconventionalstockbrokers.D)issuingstockandusingtheproceedstobuybonds.Answer:BDiff:1PageRef:346Topic:investmentbanksObjective:Explainhowinvestmentbanksoperate*:RecurringAACSB:ReflectiveThinking3)Ininvestmentbankingthe"spread"isthedifferencebetweenA)thevalueofafirm'sassetsandthevalue

4、ofitsliabilities.B)thebidandaskedpricesonabond.C)thepriceofnewcapitalguaranteedtotheissuingfirmandthepricethatcanbeobtainedinthemarket.D)thepriceofanewstockissueandthepriceofanequivalentnewbondissue.Answer:CDiff:2PageRef:346Topic:investmentbanksObjective:Explainhowinvestmentbanksoperate

5、*:RecurringAACSB:ReflectiveThinking33Copyright©2018PearsonEducation,Inc.4)AsyndicateisA)agroupofbrokersillegallymakinguseofinsiderinformation.B)agroupofcommercialbanksthatagreestoacceptthechecksofeachother'sdepositors.C)agroupofinvestmentbanksunderwritingalargesecurityissue.D)agroupofde

6、alersthatmarketsagovernmentbondissue.Answer:CDiff:1PageRef:346Topic:investmentbanksObjective:Explainhowinvestmentbanksoperate*:RecurringAACSB:ReflectiveThinking5)TheduediligenceprocessisA)theprocessbywhichafirmchoosesaninvestmentbank.B)whenaninvestmentbankresearchesafirm'svalue.C)howani

7、nvestmentbankunderwriteslargeissues.D)thereviewofaprospectusbytheSEC.Answer:BDiff:1PageRef:347Topic:investmentbanksObjective:Explainhowinvestmentbanksoperate*:RecurringAACSB:ReflectiveThinking6)Whatdoesitmeanforaninvestmentbanktoconducta"roadshow"?A)Itinvolvesaninvestmentbankma