Answers must be in detail:
- (LO 11.1) Why do corporations employ investment bankers?
- (LO 11.1) Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?
- (LO 11.1) Explain market stabilization.
- (LO 11.3) Briefly describe the process of competitive bidding and discuss its relative advantages and disadvantages.
- (LO 11.5) Briefly describe how investment banking is regulated.
- (LO 11.7) What is a short sale?
- (LO 11.7) What is program trading?
- (LO 11.9) What factors differentiate a good market from a poor market?
- (LO 11.10) What are American depository receipts (ADRs)?
- (LO 11.11) Why is it illegal to trade on insider information?
