Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

IFSE Institute CIFC Exam - Topic 9 Question 4 Discussion

Which statement regarding the underwriting process and over-the-counter (OTC) markets is CORRECT?
B) During the underwriting process investment bankers raise investment capital from investors on behalf of corporations and governments issuing securities.
A) Corporations must have their shares listed both on an exchange and the OTC market during the underwriting process.
C) Many new stock issues that are underwritten by securities firms are first listed on a stock exchange before they are sold over-the-counter.
D) The disclosure standards for stock exchanges are not as stringent as those imposed by the OTC market.

IFSE Institute CIFC Exam - 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?

Show Suggested Answer Hide Answer
Suggested Answer: B

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

Limited Time Offer

25%

Off

Get Premium CIFC Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Julie
6 months ago
Wait, are the OTC standards really stricter than exchanges? That sounds weird.
upvoted 0 times
...
Jamal
7 months ago
A seems off, corporations don't need both listings.
upvoted 0 times
...
Fabiola
7 months ago
I thought C was true too, but I'm not so sure now.
upvoted 0 times
...
Laurene
7 months ago
B is definitely correct, that's how underwriting works!
upvoted 0 times
...
Justine
7 months ago
Totally agree with B, investment bankers play a key role.
upvoted 0 times
...
Kimberlie
7 months ago
I vaguely recall something about disclosure standards, but I can't remember if exchanges are actually less stringent than OTC. That one is tricky!
upvoted 0 times
...
Felicitas
8 months ago
I think I came across a similar question about how new issues are handled, and I remember that they often go to exchanges first before OTC. So maybe C is right?
upvoted 0 times
...
Carry
8 months ago
I’m not entirely sure, but I feel like corporations don’t need to be listed on both an exchange and OTC. That seems a bit off to me.
upvoted 0 times
...
Josephine
8 months ago
I remember studying that investment bankers play a key role in raising capital during the underwriting process, so I think option B might be correct.
upvoted 0 times
...
Shaniqua
8 months ago
I feel confident about my understanding of stock exchanges and disclosure standards, that part of the question should be easy.
upvoted 0 times
...
Broderick
8 months ago
The wording on these options is tricky, I need to read them closely to identify the correct statement.
upvoted 0 times
...
Rikki
9 months ago
Okay, I know the underwriting process involves investment bankers raising capital, so I'll focus on that part of the question.
upvoted 0 times
...
Emogene
9 months ago
Hmm, I'm a bit unsure about the differences between the underwriting process and the OTC market. Let me think this through carefully.
upvoted 0 times
...
Amber
9 months ago
This question seems straightforward, I think I can handle it.
upvoted 0 times
...
My
11 months ago
B, because I heard investment bankers get the best deals on Wall Street. They must know what they're doing, right? *wink wink*
upvoted 0 times
Rolland
11 months ago
B) During the underwriting process investment bankers raise investment capital from investors on behalf of corporations and governments issuing securities.
upvoted 0 times
...
Mickie
11 months ago
A) Corporations must have their shares listed both on an exchange and the OTC market during the underwriting process.
upvoted 0 times
...
...
Tamar
12 months ago
I'm just going to pick D and hope for the best. Exchanges are shady, man. The OTC is where it's at!
upvoted 0 times
...
Hildegarde
12 months ago
Hmm, I'm torn between B and C. Maybe I should've paid more attention in my finance classes instead of napping.
upvoted 0 times
...
Candida
12 months ago
D sounds right to me. The OTC market has more stringent disclosure standards than stock exchanges. Who would've thought?
upvoted 0 times
Felix
11 months ago
C) Many new stock issues that are underwritten by securities firms are first listed on a stock exchange before they are sold over-the-counter.
upvoted 0 times
...
Una
11 months ago
A) Corporations must have their shares listed both on an exchange and the OTC market during the underwriting process.
upvoted 0 times
...
...
Joesph
12 months ago
But isn't it also true that some new stock issues are first listed on a stock exchange before being sold over-the-counter?
upvoted 0 times
...
Asha
12 months ago
I agree with Tanja, investment bankers do raise capital during the underwriting process.
upvoted 0 times
...
Tanja
12 months ago
I think the correct statement is B.
upvoted 0 times
...
German
1 year ago
I'm going with C. New stock issues are usually listed on an exchange before being sold OTC.
upvoted 0 times
...
Willow
1 year ago
I think B is the correct answer. Investment bankers definitely raise capital for corporations and governments during the underwriting process.
upvoted 0 times
Kimbery
12 months ago
It's important to have skilled investment bankers to navigate the underwriting process successfully.
upvoted 0 times
...
Mabel
12 months ago
I agree, they help companies and governments issue securities to raise capital.
upvoted 0 times
...
Norah
1 year ago
That's right! Investment bankers play a crucial role in the underwriting process.
upvoted 0 times
...
Sueann
1 year ago
I think B is the correct answer. Investment bankers definitely raise capital for corporations and governments during the underwriting process.
upvoted 0 times
...
...

Save Cancel