Vidyalelo
Management · Q296

International Finance and Treasury

Graduate and Post Graduate · Management · question 296

Q296

According to best efforts offering, investment bank in return of providing services must

A.
not receive fee
B.
receive fee
Answer
C.
receive interest rate
D.
receive market rate of return

Answer: Option B

Solution

Answer: Option B
Solution:
According to best efforts offering, investment bank in return of providing services must receive fee. An investment bank (IB) is a financial intermediary that performs a variety of services. Most Investment banks specialize in large and complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations and acting as a broker or financial adviser for institutional clients.