Investment Banks Are Prohibited from Making a Market in the Stock

question 2

True/False

Investment banks are prohibited from making a market in the stock of publically traded companies.

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Definitions:

Contract

A legally enforceable agreement between two or more parties with mutual obligations.

Voidable

A legal term describing a contract or transaction that may be declared invalid by one of the parties to the contract.

Minor's Option

The legal ability of a minor to affirm or void contracts and agreements, based on their lack of legal capacity to enter into contracts.

Deposit

An upfront payment or security placed in trust or as a guarantee for the fulfillment of an obligation or purchase.