Arguments Offered as Explanations,with or Without Market Evidence,as to Why

question 27

Multiple Choice

Arguments offered as explanations,with or without market evidence,as to why most U.S.equity issues are sold without rights include all the following except:

• A)underwriters buy at an agreed upon price and bear some risk of selling the issue.
• B)cash proceeds are available sooner in underwriting and the issue is available to a wider market.
• C)underwriters certify that the offering price is consistent with the true value of the issue.
• D)the underwritten offer price is generally set 48 hours prior to the offering while the rights price must be set much further in advance.
• E)underwriters tend to increase the stock price through their sales efforts.

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Invisible Barrier

An unseen obstacle that prevents individuals or groups from advancing beyond a certain point in professional or social contexts, often due to implicit biases or systemic structures.

Career Advancement

The process of moving up in one's career, often characterized by increased responsibility, higher pay, and more significant challenges.

National Boundaries

The defined geographical limits or borders that demarcate the territory of a particular nation-state.