IFSE Institute Exam CIFC Topic 9 Question 4 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 4
Topic #: 9

[All CIFC Questions]

Which statement regarding the underwriting process and over-the-counter (OTC) markets is CORRECT?

ACorporations must have their shares listed both on an exchange and the OTC market during the underwriting process.

BDuring the underwriting process investment bankers raise investment capital from investors on behalf of corporations and governments issuing securities.

CMany new stock issues that are underwritten by securities firms are first listed on a stock exchange before they are sold over-the-counter.

DThe disclosure standards for stock exchanges are not as stringent as those imposed by the OTC market.

Show Suggested Answer

Suggested Answer: B

by Amos at Jun 15, 2025, 11:48 PM

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German

2 days ago

I'm going with C. New stock issues are usually listed on an exchange before being sold OTC.

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Willow

5 days ago

I think B is the correct answer. Investment bankers definitely raise capital for corporations and governments during the underwriting process.

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