Before entering a formal agreement, investment banks carefully investigate the companies whose securities they underwrite; this is
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Before entering a formal agreement, investment banks carefully investigate the companies whose securities they underwrite; this is especially true of the issues of firms going public for the first time. Since the banks do not themselves plan to hold the securities but intend to sell them to others as soon as possible, why are they so concerned about making careful investigations?
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Investment banks carefully investigate the companies whose securities they underwrite for a number of reasons Reputational risk If an investment bank ...View the full answer
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Related Book For
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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