Question

    Match the following:

    A) Stock Exchange P) Corporate advisory services, Issue of securities

    B) Investment Banks Q) Market making in government securities

    C) Primary Dealers (PDs) R) Secondary market to securities

    D) Underwriters S) Subscribe to unsubscribed portion of securities

    A A-P, B-R, C-S, D-Q Correct Answer Incorrect Answer
    B A-P, B-S, C- R, D-Q Correct Answer Incorrect Answer
    C A-R, B-P, C-S, D-Q Correct Answer Incorrect Answer
    D A-R, B-P, C-Q, D-S Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Investment bankers act in several different advisory capacities for their clients. In addition to handling IPOs, investment banks offer corporations advice on taking the company public or raising capital through alternative means. PDs are expected to play an active role in the G-Sec market, both in its primary and secondary market segments through various obligations like participating in Primary auction, market making in G-Secs. Undersubscribed is a situation in which the demand for an initial public offering (IPO) or another offering of securities is less than the number of shares issued.

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