IBM Creates and Sells Additional Stock to the Investment Banker

question 21

Multiple Choice

IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public. Morgan Stanley is acting as a(n)

• A)asset transformer.
• B)asset broker.
• C)government regulator.
• D)foreign service representative.

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Definitions:

Private Sector

The part of the economy that is run by individuals and companies for profit and is not controlled by the government.

Government Sector

The part of the economy that is controlled by the government, including all public services and governmental agencies.

Unionization

The process by which workers join together to form a union, a collective organization to negotiate higher wages, better working conditions, and other benefits with their employers.

Industrial Categories

The classification of industries or businesses based on common sectors, activities, or products, used for economic analysis and policy making.