4 and 6

1. In what way is an investment banker a risk taker? (LO15-2) 2. What is the purpose of market stabilization activities during the distribution 3. Discuss how an underwriting syndicate decreases risk for each underwriter and 4. Discuss the reason for the differences between underwriting spreads for stocks 5. What is shelf registration? How does it differ from the traditional requirements 6. Discuss the benefits accruing to a company that is traded in the public securities 7. What are the disadvantages to being public? (LO15-4) process? (L015-1) at the same time facilitates the distribution process. (LO15-2) and bonds. (LO15-2) for security offerings? (LO15-1) markets. (LO15-4) If a company were looking for capital by way of a private placement, where would it look for funds? (LO15-1) How does a leveraged buyout work? What does the debt structure of the firm normally look like after a leveraged buyout? What might be done to reduce the debt? (LO15-5) How might a leveraged buyout eventually lead to high returns for a company? (LO15-5) What is privatization? (LO15-5) 8. 9. 10. 11