HIGHLIGHT/MARK ANSWERS

Done 2 of 5 QUESTION 5 An agreement with an investment bank that involves the purchase and distribution of new securities is known as: a. IPO underpricing b. due diligence c. firm commitment d. best efforts e. underwriting spread QUESTION 6 The difference between what the investment bank gets from selling securities to public investors and what they pay to the issuing firm is known as: a. IPO underpricing b. due diligence c. firm commitment d. best efforts e. underwriting spread QUESTION 7 A type of agreement with an investment bank employing only marketing and distribution efforts without the actual transfer of securities ownership to the investment banking syndicate is called: a. IPO underpricing b. due diligence c. firm commitment d. best efforts QUESTION 8 An initial public offering (IPO) involves: a. sale of new securities to private investons b. sale of used securities to the public c. a venture's first offering of SEC-registered securities to the publie d. all of the above