Q1.

Which of the following is not true of a best-efforts offer? The investment bank: I. Spreads the risk among different brokerage houses II. Buys the entire security issue from the issuing firm III. Sells the security on a commission basis

Select one:

A. I and II only

B. I and III only

C. II and III only

D. I, II, and III

Q2.

Which of the following is true concerning when a private equity firm takes a company private? I. The public shares of the firm are retired II. The firm is no longer subject to the controls and oversight required of publicly held companies III. All of the debt of the firm is taken private

A. I and II only

B. I and III only

C. II and III only

D. I, II, and III

Q3,

Futures markets have grown rapidly because futures contracts: I. Are standardized II. Are liquid III. Have lower default risk

Select one:

A. I and II only

B. I and III only

C. II and III only

D. I, II, and III