Trading, Accounts & Prohibited ActsQuestion 202 of 398
An investment bank purchases an entire new issue of stock from a corporation and resells it to the public. In this primary-market role, the investment bank is acting as a:
a.Transfer agent
b.Registrar
c.Custodian
d.Underwriter
Explanation
An underwriter helps an issuer bring new securities to market, often buying the issue and reselling it to investors in the primary market. Transfer agents and registrars handle recordkeeping, while custodians safeguard assets.
Practice all 398 questions free — no signup required.
Related questions on this topic
- Under T+1 regular-way settlement, how does the ex-dividend date relate to the record date?
- When a retail customer places a market order to buy stock from a dealer, at which price will the customer generally buy?
- What happens to a standard stop order once the market reaches the stop price?
- An investor who is 'long' 200 shares of a stock has which market position and outlook?
- Which statement about the risk of a short stock position is correct?
- An investor buys 100 shares of common stock regular way on a Thursday, with no intervening holidays. On what day does the trade settle?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review