1 Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?
2Briefly describe the process of competitive bidding and discuss its relative advantages and disadvantages.
3Explain market stabilization.
Identify the costs associated with going public.
4Briefly describe how investment banking is regulated.
5Describe the inroads into investment banking being made by commercial banks.
6In 2003, several investment banking firms were fined $1.4 billion for ethics abuses related to the underwriting process. Will this be a deterrent for ethical lapses?
7What were some of the reasons for the decline in Facebook’s stock price after its IPO?