An Investment Banker May Merely Act as an Advisor And/or

question 4

Multiple Choice

An investment banker may merely act as an advisor and/or distributor of the new security. The function of buying the securities from the issuer is called ________.

• A) advising.
• B) distributing.
• C) purchasing.
• D) underwriting.

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Definitions:

Implied-In-Law

Refers to obligations and rights that arise from certain acts or situations as recognized by courts, despite no explicit agreement or contract.

Void Contract

A contract that is legally unenforceable from the start due to illegality or inability to fulfill the terms.

Quasi-Contract

Not an actual contract but a legal construct imposed by courts to prevent unjust enrichment where no formal contract exists.

Unjustly Enriched

A legal term describing a situation where one party benefits at another's expense without a valid basis for the gain.