Question 9 Not yet saved Marked out of 1.00 PFlag question All of the following

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Question 9 Not yet saved Marked out of 1.00 PFlag question All of the following statements about stand-by (firm commitment) underwriting are true EXCEPT Select one: A. The investment banker guarantees the issuer a fixed amount of money from the share sale. O B. The investment banker actually buys the shares from the company. O C. The issuer bears the risk that the resale price might be lower than the price the underwriter pays. O D. The underwriter bears the risk that the resale price might be lower than the price the underwriter pays Previous page Next page

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9. Option "C" is correct, i.e., The issuer bears the risk that the resale price might be lower than the price the underwriter pays. instead the holder bears the above mentioned risk. All other statements are true.

10. Correct option is "A", i.e., crowd funding, whereas , Venture capital is a type of funding for a new or growing business. It usually comes from venture capital firms that specialize in building high risk financial portfolios.

Bootstrapping is building a business out of very little or virtually nothing. Boot strappers rely usually on personal income and savings, sweat equity, lowest possible operating costs, fast inventory turnaround, and a cash-only approach to selling.

Initial public offering(IPO) is the process by which a private company can go public by sale of its stocks to general public.

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