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Unformatted text preview: I) Private financial marketplace for providing equity investment for small, startup firms II) Bond market III) Market for providing equity to well-established firms A. I only B. II only C. II and III only D. III only 4. Suppose a government wishes to auction 1 million bonds and three would-be buyers submit bids. Price Quantity Buyer A $1200 .75 million Buyer B $1100 .5 million Buyer C $1050 .8 million In an uniform-price auction: A. Buyer A pays $1,100 and Buyer B pays $1,050 B. Buyer A pays $1,200 and Buyer B pays $1,100 C. Buyer A pays $1050 and Buyer B pays $1050 D. Buyer A pays $1,100 and Buyer B Pays $1,100 The highest price that clears the market is the price in a uniform price auction. 2 5. The managing underwriter is also called the: A. syndicate B. bookrunner C. spet D. none of the above...
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This note was uploaded on 05/09/2011 for the course FNAN 522 taught by Professor Wilson during the Spring '11 term at University of Louisiana at Lafayette.
- Spring '11