Author Question: A bull market is a prolonged declining market. Indicate whether the statement is true or ... (Read 120 times)

jake

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A bull market is a prolonged declining market.
 
  Indicate whether the statement is true or false.

Question 2

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?



kjo;oj

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Answer to Question 1

Answer: FALSE
Explanation: A BEAR market is a prolonged declining market.

Answer to Question 2

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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jake

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