MGMT411 Chapter 4 Test Bank 2023

By 2012, there were approximately ________ securities firms and investment banks operating. A. 9,100 B. 7,600 C. 1,200 D. 480 E. 220 - -D -The most common benchmark of relative size of a firm in the securities trading and underwriting industry is based on A. total asset value. B. total equity. C. total debt. D. annual sales. E. annual profits. - -B -Which of the following differentiates securities firms from investment banks? A. Securities firms are concerned with the commercial side of the business while investment banks are concerned with the retail side of the business. B. Securities firms assist in trading of existing securities while investment banks specialize in underwriting new securities. C. Securities firms underwrite new issues of securities while investment banks provide brokerage services. D. Securities firms originate new issues of securities and investment banks underwrite the securities. E. Securities firms are concerned with private placements of securities whereas investment banks are concerned with publicly traded securities. - -B -Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business? A. Purchase of existing securities. B. Sale of securities in the secondary market. C. Brokerage of existing securities. D. Underwriting issues of new securities. E. All of the above. - -D -Which of the following is true?