Which of the following statements are true about when-issued trading?

It takes place before an auction

It provides an efficient means of price discovery

It is a forward contract

All of the above

In the event of a corporate bond default, who represents the interests of the bond holders?

Bond trustee

Bond bookrunners

Independent public accountant of the issuer

The issuer's legal counsel

The distribution of securities among the underwriters shown in the prospectus supplement reflects the dollar amount of securities for sale allocated to each underwriter.

True

False

The $3.5 billion Apple issue (placed in early 2016) is more senior than other secured debt in its capital structure.

True

False

The co-managers of an IPO pricing have an incentive to set the highest price because their underwriting discount is computed on the basis of this price.

True

False

The co-managers exercise of the "green shoe" option to issue 15% more shares will typically happen when

the price has risen from the initial price

fallen from the initial price

it will always be exercised

An underwritten security offering involves _____ risk compared to an auction.

more

less

same

Despite a higher net yield, most investors in money market securities will not buy direct from the issuer

True

False

Optional redemption means the purchaser of the bond has the right to retire the bond under certain conditions.

True

False

An IPO settles _____ the usual T+2 days for equity security settlement after a trade.

in more than

in less than

in exactly

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