Question

When a corporation wants to raise funds by issuing new stocks or bonds, it generally uses the services of _____.
a. a commercial lender
b. the Securities and Exchange Commission (SEC)
c. an over-the-counter derivatives market
d. the New York Stock Exchange (NYSE)
e. an investment banker

Answer 1

Answer:

The correct answer is e. an investment banker

Explanation:

Investment bankers are behind some of the biggest businesses that develop in the stock market. These banking professionals are hired by companies to obtain money or capital in the stock market for the main milestones that will occur in the existence of a corporation. Once the relationships between corporate management teams and investment banks are established, the same teams often work together for subsequent events in the stock market. Investment bankers decide how to value companies and offers, and impact opportunities for investors.