The SEC attempts to protect investors who are purchasing newly issued securities by making sure that the
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The SEC attempts to protect investors who are purchasing newly issued securities by making sure that the information put out by a company and its investment bankers is correct and is not misleading. However, the SEC does not provide an opinion about the real value of the securities; hence, an investor might pay too much for some new stock and consequently lose heavily. Do you think the SEC should, as a part of every new stock or bond offering, render an opinion to investors on the proper value of the securities being offered? Explain.
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Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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