Financial Markets and Institutions (2-downloads)

6. Why do investment banking firms often form syndi-

cates for selling securities to the public?

7. Is it better for a security issue to be fully subscribed

or oversubscribed?

8. Why would an investment banker advise a firm to

issue a security using best efforts rather than

underwriting?

9. What is the difference between a hostile takeover and

a merger?

10. What valuable service do dealers provide that

facilitates transaction trading and keeping the

markets liquid?

11. What is the difference between a market order and

a limit order?

12. Is it possible to make money if you know that the

price of a security will fall in the future? How?

13. Why do commercial banks object to brokerage houses

being allowed to offer many of the same services tra-

ditionally reserved for banks?

14. What are the principal advantages often cited as moti-

vation for a private equity buyout?

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Part 6 The Financial Institutions Industry