Which of the Following Differentiates Securities Firms from Investment Banks

question 81

Multiple Choice

Which of the following differentiates securities firms from investment banks?

• A)Securities firms are concerned with the commercial side of the business while investment banks are concerned with the retail side of the business.
• B)Securities firms assist in trading of existing securities while investment banks specialize in underwriting new securities.
• C)Securities firms underwrite new issues of securities while investment banks provide brokerage services.
• D)Securities firms originate new issues of securities and investment banks underwrite the securities.
• E)Securities firms are concerned with private placements of securities whereas investment banks are concerned with publicly traded securities.

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Definitions:

Preoperational Thinking

A stage in Jean Piaget's theory of cognitive development where children aged 2 to 7 years old think symbolically but are not yet able to perform operations, or reversible mental processes.

Physical Maturation

The process of reaching physical and biological growth and development, eventually achieving full adult size and functional capability.

Zone of Proximal Development

A concept in education and psychology referring to the difference between what a learner can do without help and what they can achieve with guidance.

Challenging Tasks

Tasks or activities that require significant effort and skill beyond current capabilities, promoting learning and development.