Please help:

1. Brokers have been known to sell securities based on sales scripts that have little to do with the information provided in the prospectus. Also, investors often make investment decisions before receiving (or reading) the prospectus. Who is at greater fault in this case?

Traditionally, IPO share allocations have been reserved for the underwriting syndicates' best customers. What ethical implications exist.

1. Suppose managers of a firm know that the company is approaching financial distress.

Should the managers borrow from creditors and issue a large one-time dividend to shareholders?

How might creditors control this potential transfer of wealth?