An investment dealer acts as an agent when the corporation is ______.Multiple choice question.hiring its management teamselling its shares to the publicselling its shares to a private entityevaluating an acquisition
Question
An investment dealer acts as an agent when the corporation is ______.Multiple choice question.hiring its management teamselling its shares to the publicselling its shares to a private entityevaluating an acquisition
Solution
The correct answer is "selling its shares to the public".
When a corporation is selling its shares to the public, an investment dealer often acts as an agent. This is because the dealer helps the corporation find potential buyers for its shares in the public market. This process is also known as underwriting. The dealer essentially acts as a middleman between the corporation and the public, facilitating the sale of shares.
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