Help
Course Catalog > Bonds > 100
Bonds 105: The Process of Issuing Bonds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Today, investment bankers primarily sell newly issued bonds through online brokerage services.
Choose wisely. There is only one correct answer.
False. Investment bankers sell bonds through a variety of means, including brokerage houses, ads in the financial press, and investor networks.
2.
An underwriter for newly issued bonds profits through _______.
Choose wisely. There is only one correct answer.
An underwriting spread. The underwriter earns a profit, based on the difference between its purchase price and the selling price.
3.
An investment banker firm has just sold a newly issued bond through private placement. The purchaser of the bond was most likely _______.
Choose wisely. There is only one correct answer.
An insurance company. Investment bankers may sell newly issued bonds through private placements to institutional investors like insurance companies.
4.
A primary role of investment bankers is to help a corporation invest its capital wisely.
Choose wisely. There is only one correct answer.
False. A primary role of investment bankers is to help a corporation issue securities.
5.
The Securities and Exchange Commission requires bond issuers to register all newly issued bonds.
Choose wisely. There is only one correct answer.
False. Bonds sold through private placement do not need to be registered with the SEC.