Week 7 Finance Questions

DQ1: Why do corporations employ investment bankers?

DQ2: Identify the primary market functions of investment bankers?

DQ3: Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?

DQ4: Briefly describe the process of competitive bidding and discuss its relative advantages and disadvantages.

DQ5: Explain market stabilization.

DQ6: Identify the costs associated with going public.

DQ7: Briefly describe how investment banking is regulated.

DQ8: Describe the inroad into investment banking being made by commercial banks.

DQ9: In 2003, several investment banking firms were fined $1.4 billion for ethics abuses related to the underwriting process. Will this be a deterrent for ethical lapses?

DQ10: What were some of the reasons for the decline in Facebook’s stock price after its IPO?

DQ11: What are some of the characteristics of an organized securities exchange?