Before entering a formal agreement, investment bankers carefully investigate the companies whose securities they underwrite; this is
Question:
Before entering a formal agreement, investment bankers carefully investigate the companies whose securities they underwrite; this is especially true of the issues of firms going public for the first time. Since the bankers do not themselves plan to hold the securities but intend to sell them to others as soon as possible, why are they so concerned about making careful investigations?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Question Posted: