4-39 Which of the Following Differentiates Securities Firms from Investment

question 29

Multiple Choice

4-39 Which of the following differentiates securities firms from investment banks?

• A)Securities firms are concerned with the commercial side of the business while investment banks are concerned with the retail side of the business.
• B)Securities firms assist in trading of existing securities while investment banks specialize in underwriting new securities.
• C)Securities firms underwrite new issues of securities while investment banks provide brokerage services.
• D)Securities firms originate new issues of securities and investment banks underwrite the securities.
• E)Securities firms are concerned with private placements of securities whereas investment banks are concerned with publicly traded securities.

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Definitions:

Popular Sovereignty

A principle that the authority of a state and its government are created and sustained by the consent of its people, through their elected representatives.

Missouri Compromise

An agreement passed in 1820 between the pro-slavery and anti-slavery factions in the United States Congress, involving primarily the regulation of slavery in the western territories.

Republican Party

One of the two major political parties in the United States, traditionally emphasizing limited government, free market principles, and conservative social policies.

Expansion of Slavery

The 19th-century movement in the United States toward spreading the institution of slavery into new territories and states.