Which Example Best Demonstrates a Legislator Acting as a Trustee

question 33

Multiple Choice

Which example best demonstrates a legislator acting as a trustee of his or her constituency?

• A) A legislator considers public opinion before using his or her best judgment.
• B) A legislator does whatever is best for his or her reelection.
• C) A legislator follows the public opinion of his or her constituency.
• D) A legislator does what is in the best interest of his or her party.

---

Definitions:

Underpricing

The practice of setting the initial offering price of a security, typically a stock, below its market value.

Public Issue

The offering of shares by a company to the public for the first time to raise capital.

Standby Fee

A charge paid to a lender or service provider for keeping credit or facilities available to a borrower, even if not currently used.

Overallotment Option

A provision that allows underwriters to sell investors more shares than initially planned by the issuer, typically in an Initial Public Offering (IPO).