3. What is the purpose of private placement

To help nonpublic sales of securities issued by small firms less known to the capital market

None of the choices

To help investment banks capture fees without spending too much on large syndicates

All of the choices

To save costs related to shelf registration of new securities

4. Why does an investment bank pursue a best-efforts arrangement to help with new securities issuances

A/ and C/

B/ to pass the risk related to issuance of new securities from the issuing firm to the investment banks

B/ and C/

C/ pricing these new securities is too risky for investment banks

A/ to pass the risk related to the issuance of new securities from investments banks to the issuing firm