IBM Creates and Sells Additional Stock to the Investment Banker

question 11

Multiple Choice

IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public through its mutual funds.
Morgan Stanley is acting as a(n)

• A)asset transformer.
• B)asset broker.
• C)government regulator.
• D)foreign service representative.
• E)derivatives trader.

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