Which of the following is an attribute of investment bankers?
A) They make long-term investments for banking institutions.
B) They bear the risk of selling a security issue.
C) They act as middlemen between the issuer and the banker.
D) They provide the issuer with advice relating to the amounts of dividend to be paid.

Question

Quizplus · Accepted Answer

Investment bankers bear the risk of selling a security issue. They help organizations and governments to raise money by underwriting and selling securities, such as stocks and bonds, to investors. They charge a fee for this service, but they also take on the risk that the securities will not sell for the desired price or at all. Choices A, C, and D are incorrect because investment bankers do not typically make long-term investments for banking institutions, act as middlemen between the issuer and the banker, or provide the issuer with advice relating to dividend amounts.

Which of the Following Is an Attribute of Investment Bankers