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Match the Following with the Items Below

Question 111

Matching

Match the following with the items below:

Premises:

Responses:

When divisions and products are sold and assets are redeployed into higher-yielding areas.

restructuring

A group of investment bankers formed to share the risk of a security offering.

underwriting syndicate

One who sells or places an asset for another party.

leveraged buyouts

Occurs when either management or another investment group borrows most of the needed cash to repurchase all traded shares from the stockholders.

shelf registration

A secondary market where securities are traded after their initial offering to the public.

best efforts

Taking on the responsibility of distributing a security without transferring the risk associated with the new issue from the company to the investment banker.

aftermarket

Investment bankers that take a company public, but instead of selling companies owned by individuals, the investment bankers sell companies previously owned by governments.

privatization

The act of taking on any risk that might be associated with the issue of a new security.

underwrite

Permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.

agent

The act of setting the price of a new security slightly under the market value to ensure a receptive sale.

underpricing

Premises:

When divisions and products are sold and assets are redeployed into higher-yielding areas.

A group of investment bankers formed to share the risk of a security offering.

One who sells or places an asset for another party.

Occurs when either management or another investment group borrows most of the needed cash to repurchase all traded shares from the stockholders.

A secondary market where securities are traded after their initial offering to the public.

Taking on the responsibility of distributing a security without transferring the risk associated with the new issue from the company to the investment banker.

Investment bankers that take a company public, but instead of selling companies owned by individuals, the investment bankers sell companies previously owned by governments.

The act of taking on any risk that might be associated with the issue of a new security.

Permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.

The act of setting the price of a new security slightly under the market value to ensure a receptive sale.

Responses:

restructuring

underwriting syndicate

leveraged buyouts

shelf registration

best efforts

aftermarket

privatization

underwrite

agent

underpricing

Correct Answer:

Premises:

Responses:

When divisions and products are sold and assets are redeployed into higher-yielding areas.

A group of investment bankers formed to share the risk of a security offering.

One who sells or places an asset for another party.

Occurs when either management or another investment group borrows most of the needed cash to repurchase all traded shares from the stockholders.

A secondary market where securities are traded after their initial offering to the public.

Taking on the responsibility of distributing a security without transferring the risk associated with the new issue from the company to the investment banker.

Investment bankers that take a company public, but instead of selling companies owned by individuals, the investment bankers sell companies previously owned by governments.

The act of taking on any risk that might be associated with the issue of a new security.

Permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.

The act of setting the price of a new security slightly under the market value to ensure a receptive sale.