Prospective Investors Are Advised of a Stock's Potential Risks by The

question 8

Multiple Choice

Prospective investors are advised of a stock's potential risks by the:

• A) underwriter.
• B) underpricing laws.
• C) prospectus.
• D) initial public offering.

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Definitions:

Payor Bank

The bank that dispenses the payment on a written draft or check upon presentation.

Drawee Bank

The financial institution upon which a check is drawn or which is directed to pay the specified amount.

Collecting Bank

A financial institution involved in processing items for payment, such as checks, on behalf of a depositor.

Collecting Bank

A bank that handles the processing of payments (like checks) on behalf of the payee or a client bank.