What consideration might be important in the selection of an investment banking firm?
A member of your board has asked if you have considered competitive bids for the
distribution of your securities compared with a negotiated contract with a particular firm.
What factors are involved in this decision?
Assuming that you have decided upon a negotiated contract what are the first questions
that you would ask of the firm chosen to represent you?
As the investment banker what would be your first actions before offering advice?
Assuming the investment banking firm is willing to distribute your securities describe the
alternative plans that might be included in a contract with the banking firm.
How does the investment banking firm establish a selling strategy?
How might the investment banking firm protect itself against a drop in the price of the
security during the selling process?
What follow up services will be provided by the banking firm following a successful
distribution of the securities?
Three years later as an individual investor you decided to add to your own holding of the
security but only at a price that you consider appropriate. What form of order might you