The Firms That Serve as Intermediaries in Selling Newly Issued

question 184

Multiple Choice

The firms that serve as intermediaries in selling newly issued securities are called ____ firms.

• A)investment banking
• B)insurance underwriting
• C)brokerage
• D)commercial banking

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Definitions:

Implied Warranty

An unwritten and unspoken guarantee that a product will meet a minimum level of quality and reliability.

Negligent

Failing to take proper care in doing something, often leading to harm or damage.

Public Policy

Principles and standards considered to be in the interest of the general public and used as a guide for legislative or judicial action.

Privity Statutes

Laws that dictate the relationship necessary between parties in order to sue or be sued under a contract.