The Investment Banker's Function Involves All of the Following Except

question 79

Multiple Choice

The investment banker's function involves all of the following except

• A) take a portion of the risk in the distribution of an issue.
• B) always insure a company a given amount of equity can be sold so that long-range financial planning can be made accurately.
• C) make a market by buying and selling a security to insure a liquid market.
• D) contract to buy securities from the corporation and resell them to other security dealers and the public.

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Definitions:

Block Grants

A type of financial aid issued by the federal government to state or local governments for broad purposes with few restrictions on how it is spent.

General Revenue Sharing

A federal government program that provides funds to local governments with minimal restrictions on how the money is spent, allowing for local discretion.

Unfunded Mandates

Regulations or mandates imposed by higher levels of government without providing the necessary funding to fulfill them.

Tenth Amendment

An amendment to the U.S. Constitution that reserves powers not delegated to the federal government to the states or to the people.