Financial Market
Question 1
Using the paper by Kregel (2010) , the case study on Lehman Brothers and your own additional research, argue whether investment banks should perform any other activity other than underwriting of securities. (15 marks)
Question 2
According to Smith and Warner (1979) how are bond covenants used in debt contracts to
control the conflict between bondholders and stockholders ? (15 marks)
Question 3
Answer the following question after reading the case study on LinkeIn’s IPO
What are the causes of underpricing? Use relevant academic research to supplement your answer.
