Which of the following statements are true?
i.Underwriters help private companies access public stock markets through IPOs.II.Shelf registrations and private placements are examples of seasoned security issues.III.Issue costs for debt are typically greater than issue costs for equity.IV.Bearer bonds make it easier for investors to avoid paying taxes on interest income.
A) I and II only
B) I and III only
C) I,II,and IV only
D) I,III,and IV only
E) I,II,III,and IV

Question

Quizplus · Accepted Answer

i. True, underwriters play a crucial role in assisting private companies to go public via IPOs.ii. True, shelf registrations and private placements are methods used by companies for seasoned (secondary) offerings.iii. False, issue costs for equity are typically higher than for debt due to the more complex regulatory requirements and the risk premium demanded by equity investors.iv. True, bearer bonds, which do not record the owner's name and are thus owned by whoever holds them, historically made it easier for investors to evade taxes on interest income, although they are now largely obsolete in many markets due to regulatory changes.

Which of the Following Statements Are True