Most companies do not have the resident expertise to complete an initial public offering (IPO), so they hire an investment banker to help accomplish the sale. Describe three significant tasks that an investment banker provides
What will be an ideal response?
Answer: First, the investment banker provides talent and expertise to structure the sale of the newly issued shares while complying with all SEC regulations. Second, the investment banker prepares the prospectus, a document that provides potential buyers with information about the company and the impending sale. Third, the investment banker makes sure that all relevant information is disclosed prior to the sale. If material information is not disclosed prior to the sale, both the issuing company and the investment banker may be liable if a lawsuit is brought by those who bought the newly issued shares.
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While lower level needs are basically infinite, higher level needs are finite
Indicate whether the statement is true or false.
Which of the following statements concerning the financial stability of health care insurers is false?
B) Federally-qualified HMOs must carry insurance to cover the unpaid bills of patients in the event they become insolvent. C) Private firms rate the financial stability of commercial health care insurers. D) In many states commercial health insurers are protected by state guarantee funds.