Participation in the activities relating to the underwriting and distribution of new issues of debt and equity by a securities firm involves the function of

Question

Quizplus · Accepted Answer

The activities of underwriting and distributing new issues of debt and equity are part of investment banking. Therefore, the best choice would be D, investment banking. A is incorrect because investing involves the purchase of securities in existing companies, not underwriting new issues. B refers to the activity of combining or acquitting companies, not underwriting new securities. C refers to the activity of providing liquidity in the secondary market for existing securities, not underwriting new issues. E refers to the activity of buying and selling securities in the secondary market, not underwriting new issues.

Participation in the Activities Relating to the Underwriting and Distribution