"First stage" Venture Capital financing could likely be used to: a) get a prototype built and complete a manufacturing plan b) make major investments in marketing, manufacturing, and distribution c) purchase 100% of Bernard Madoff's investment firm A leveraged buyout (LBO) involves: a) taking a company private using borrowed money b) taking a company public c) purchasing a company with 100% cash The underwriter of equity securities buys the assuming full financial entire issue, responsibility for any unsold shares. This is known as: a) best efforts underwriting b) firm commitment underwriting c) none of the above A trader who buys and sells securities from inventory is known as a a) dealer b) broker c) Managing Securities Principal d) RIA (Registered Investment Advisor) The price a dealer is willing to sell a security for is called: a) the spread b) ask price c) bid price d) "commission plus" price TRUE FALSE T. F. 1. A securities firm which is a registered B-D (Broker-Dealer) can profit from both commissions and "spread". T. F. 2. Historically, "specialists" the floor of the NYSE were obligated on to make and maintain a fair, orderly market for securities assigned to them. T. F. 3. An NYSE floor broker receives a customers limit order to sell 2000 shares of "T" stock, at $60.75 per share. The customer will not accept a price of $60.00 per share