Chapter 1 Flashcards
Investment bankers assist business that seek to raise capital through:
The issuance of securities
What two parts of a broker dealer must be segregated by information barriers?
The trading department and the investment banking department
Who is responsible for maintaining a list of the company’s current shareholders and their contact info, and also assists in the transfer of shares?
The transfer agent
Who is responsible for ensuring that a corporation doesn’t issue more shares than it has been authorized to use?
The registrar
What is it called when you buy a stock on one exchange and simultaneously sell it on another exchange?
Arbitrage
What was the reasoning behind creating the DTC?
To provide a book-entry system to handle the increase in volume of securities transactions
Where can you find the quoted price of a non-listed stock?
On the OTC Pink Marketplace
Broker dealers that receive a commission are acting in what capacity?
Agency
A firm that charges a mark up on a stock transaction is acting in what capacity?
Dealer (principal)
A broker dealer sells a security to an investor at the ________ , and buys a security from an investor at the ________.
Ask price, bid price
A market makers quote is 7.10 - 7.15, 20 x 10. This quote indicates the firms willingness to what?
Buy 2,000 shares at 7.10 and sell 1,000 shares at 7.15
A married couple who has earned $300,000 of income in each of the last two years and reasonably expect this level to continue is considered what?
An accredited investor
