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Many Issuers of Stocks and Bonds Use Underwriters for All

Question 27

Multiple Choice

Many issuers of stocks and bonds use underwriters for all of the following reasons EXCEPT


A) only licensed underwriters can issue stocks and bonds.
B) underwriters are skilled in collecting market information and communicating it to their clients.
C) investment bankers collect information on issuing firms and put their reputations on the line in issues they underwrite.
D) an investment bank's endorsement is particularly valuable for issuers that are less well know to small investors.

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