1. Which of the following is not true of a best-efforts offer? The investment bank:
I. Spreads the risk among different brokerage houses
II. Buys the entire security issue from the issuing firm
III. Sells the security on a commission basis
A. I and II only
B. I and III only
C. II and III only
D. I, II, and III
2. Which of the following is true concerning when a private equity firm takes a company private?
I. The public shares of the firm are retired
II. The firm is no longer subject to the controls and oversight required of publicly held companies
III. All of the debt of the firm is taken private
A. I and II only
B. I and III only
C. II and III only
D. I, II, and III
3. Futures markets have grown rapidly because futures contracts:
I. Are standardized
II. Are liquid
III. Have lower default risk
A. I and II only
B. I and III only
C. II and III only
D. I, II, and III