The Basic Role of a Company Underwriter About to List

question 39

Multiple Choice

The basic role of a company underwriter about to list a new share issue on a stock exchange is to:

• A) provide advice on the timing of the share issue.
• B) ensure the company complies with the stock exchange's listing rules.
• C) establish a deep and liquid secondary market in the shares.
• D) purchase any unsold shares on issue.

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Definitions:

Improve

To make or become better; to enhance the quality, value, or performance of something.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior occurring again in the future.

Negative Reinforcer

An unpleasant or adverse stimulus that, when removed after a behavior, increases the likelihood of that behavior being repeated.

Mother

A female parental figure who may give birth to, adopt, or rear a child in the role of providing care, nurture, and protection.