1CHAPTER 15 How Corporations Issue Securities Answers to Problem Sets 1. a. Further sale of an already publicly traded stock b. U.S. bond issue by foreign corporation c. Bond issue by industrial company d. Bond issue by large industrial company. 2. a. B b. A c. D d. C 3. a. Financing of start-up companies. b. Underwriters gather non-binding indications of demand for a new issue. c. The difference between the price at which the underwriter buys the security from the company and re-sells it to investors. d. Description of a security offering filed with the SEC. e. Winning bidders for a new issue tend to overpay. 4. a. A large issue b. A bond issue c. Subsequent issue of stock d. A small private placement of bonds.