When facilitating a secondary stock offering, a securities firm commonly performs all of the following functions except _____
A) origination.
B) underwriting the stock.
C) distribution of the stock.
D) its own purchase of at least 20 percent of the offering.

Question

Quizplus · Accepted Answer

A securities firm does not typically purchase its own stock when facilitating a secondary offering. This would be a conflict of interest and could violate securities laws.

When Facilitating a Secondary Stock Offering, a Securities Firm Commonly