21. In an underwritten offer, the risk of selling the issue at a price lower than that promised to the issuer is borne by the investment bank.
22.In an underwritten offer, the investment bank is compensated based on the number of securities sold.
23.Universal banks are financial institutions that are allowed to do only commercial banking activities.
24.Investment Banks provide services for the direct financing in markets such as collecting deposits and making business loans.
25. In 2008, Lehman Brothers filed bankruptcy and many investment banks receive the bailout funds from the Treasury. This means there is very limited career opportunities in investment banking.
26. Financial Services Modernization Act of 1999 is to limit investment banks to engage any commercial banking activities.
27. One of the major causes of financial crisis is the subprime mortgage loans that are facilitated by investment banks.