Q1. Which of the following securities (all from the same issuer) would be the riskiest? A. Secured bond B. Junk Bond c. Preferred Stock 2. Common 5 tock a2. Which of the following statements is FALSE? A. IPOs are usuafly underpriced. 8. Underwriters are not involved in a direct listing of stock. c. PlPes involve selling stock at below-market prices leading to dilution of current shareholders. 10. When a firm announces a seasoned equity offering, its stock price usually increases. Q3. Which of the following correctly describes how stocks and corporate bonds are traded in the ectandary market? Stociss and bonds are both mostly traded "over-the-counter" through broker-dealer networks. rocis and bonds are both mostly traded on exchanges. ocis are mostly traded on exchanges while bonds are mostly traded over-the-counter. ciss are mostiy traded over-the-counter while bonds are mostly traded on exchanges