ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Investment bankers typically provide one or more of the following services for the entity issuing new securities: Advice on the timing, issue price, volume of securities offered, and other terms, Purchase all or some of the securities from the issuer, and. Resell the securities to the public.

Detailed explanation-2: -Investment banks provide underwriting services for new stock issues when a company decides to go public and seeks equity funding. Underwriting basically involves the investment bank purchasing an agreed-upon number of shares of the new stock, which it then resells through a stock exchange.

Detailed explanation-3: -Public Cash Offerings Normally, when a corporation wishes to issue new securities and sell them to the public, it makes an arrangement with an investment banker whereby the investment banker agrees to purchase the entire issue at a set price. This is called a firm commitment underwriting.

Detailed explanation-4: -Securities firms specialize primarily in the purchase, sale, and brokerage of securities, while investment banks primarily engage in originating, underwriting, and distributing issues of securities.

Detailed explanation-5: -Investment securities are a category of securities-tradable financial assets such as equities or fixed income instruments-that are purchased with the intention of holding them for investment.