Which of the following statements regarding investment companies is true?

a. The share prices of both open-end and closed-end funds are based on Net Asset Value (NAV). b. The number of shares of closed-end funds remains constant throughout the life of the fund. c. Investors must wait until after the market closes before placing an order for mutual fund shares. d. Both b. and c. are true.

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Defined-benefit pension plans

a. are effectively the same as debt obligations of employers b. do not specify the amount received by the employee at retirement c. issue retirement funds to employees based on the performance of the assets invested in d. are the least risky pension plans from an employers viewpoint

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During a firm-commitment underwriting,

a. underwriters must sell at least half of the issue of securities in order to realize their gross spread b. underwriters purchase the entire allotment of newly issued shares c. underwriters face a tremendous risk of capital loss d. Both b. and c. e. all of the above

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When a privately-held company decides to go public, certain steps must be taken. Which one of the following is not one of these steps?

a. The company must select an underwriter. b. The company must register its IPO with NASDAQ. c. The company prints a preliminary prospectus and presents to investors. d. The underwriters and the companys management team price a deal.