QUESTION 32

1. With firm commitment underwriting, the investment banker

   	A.	purchases all of the shares of stock from the company and then sells them to the investing public
   	B.	does it best to sell as many securities as possible
   	C.	receives a fee for each security sold
   	D.	All things being equal, the issuing company (going public) would prefer the firm commitment basis since this assures from the that all of the shares are sold.
   	E.	Both A & D

2 points

QUESTION 33

1. A mutual fund has a NAV of $20 per share, if you invest $10,000 into this no load mutual fund you will buy ________ shares.

   	A.	100
   	B.	500
   	C.	250
   	D.	1,000
   	E.	6

2 points

QUESTION 34

1. Hybrid mutual funds invests in:

   	A.	Common stocks
   	B.	Toyota Prius
   	C.	Long term bonds
   	D.	Both A & C