The Investment Banker's Function Involves All of the Following Except

question 22

Multiple Choice

The investment banker's function involves all of the following except which one?

• A)Taking a portion of the risk in the distribution of an issue
• B)Always ensuring a company that a given amount of equity can be sold so that long-range financial planning can be made accurately
• C)Making a market by buying and selling a security to ensure a liquid market
• D)Contracting to buy securities from the corporation and resell them to other security dealers and the public

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Definitions:

Lienholder

A party that has a legal right or interest in a piece of property as security for a debt or charge.

Lien

A legal right or interest that a creditor has in the debtor's property, usually lasting until the debt that it secures is paid.

Legal Action

The process of seeking judicial intervention to enforce or protect a right through a lawsuit or other legal means.

Surety

A guarantee, typically by a third party, ensuring the fulfillment of an obligation or the performance of a contract.