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:

Kinetic Energy

The energy that an object possesses due to its motion, dependent on mass and velocity.

Efficient

Performing or functioning in the best possible manner with the least waste of time and effort.

Catalyst

Substance that increases the rate at which a chemical reaction proceeds without being changed permanently.

Chemical Reaction

A process that leads to the transformation of one set of chemical substances to another, characterized by the breaking and formation of bonds.