Questions:
1) Why do corporations employ investment bankers?
2) Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?
3) What were some of the reasons for the decline in Facebook's stock price after its IPO?
4) Briefly, describe the process of competitive bidding and discuss its relative advantages and disadvantages.
5) Describe the inroads into investment banking being made by commercial banks.
6) What are some of the characteristics of an organized securities exchange?
7) Why is there a difference between bid and ask prices at some point in time for a specific security?
8) Describe the differences among the following three types of orders: market, limit, and stop loss.
9) Describe several differences between the organized exchanges and the over-the-counter (OTC) market.