Why do corporations employ investment bankers?

Review Questions

1. (LO 11.1) Why do corporations employ investment bankers?

2. (LO 11.1) Identify the primary market functions of investment bankers.

3. (LO 11.1) Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?

4. (LO 11.1) Explain market stabilization.

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