Question

The typical role of a securities firm in a public offering of securities is to 1) purchase the entire issue for its own investment. 2) place the entire issue with a single large investor. 3) spread the issue across several investors until the entire issue is sold. 4) provide all large investors with loans so that they can invest in the offering.

Answer 1

Answer: Option C

Explanation: Public offering refers to the offering made by a company to the general public. Securities firm are the firms which specializes in such kinds of transactions.

The job of such firm is to make sure that the offering takes place correctly and all the shares are sold at the determined price. These firms then charge their fees from the issuing company. The fees could be fixed or variable as per the sale made.

Hence the correct option is C.