The Influence of Underwriter And Auditor

Running head: FINANCIAL MARKETS AND INSTITUTES 1
FINANCIAL MARKETS AND INSTITUTES
Name of student
Institution Affiliation

FINANCIAL MARKETS AND INSTITUTES 2
FINANCIAL MARKETS AND INSTITUTES
Q 1
Quantitative easing refers to the alternative monetary policy used by the central bank of a
country in buying large assets in order to increase the supply of money and encourage spending
in an economy. The unconventional policy has been successfully used by FED whereby it bought
assets from financial institutions to increase its total assets from $882 in 2007 to $4.473 trillion
in 2017 (Khatiwada, 2017).
Q2
Underwriters offer a wide range of services during public offerings. Most importantly, they act
as an intermediary between companies issuing stocks and investors. In addition, the underwriter
lends a hand to a company in the preparation of an Initial public offering (IPO).Similarly, the
underwriter helps the company to determine the amount of money that it seeks to raise as well as
the kind of securities to be allocated. The underwriter is also responsible for the creation of a
prospectus to be used in marketing the IPO to potential investors (Razafindrambinina & Kwan,
2013).
Q 3
An over the counter market abbreviated as OCT refers to a spread out market in which the
members trade directly with one another without the involvement of a broker or a central
exchange. Normally, market participant’s trade in currencies, commodities, bonds, structured
products, derivatives, stocks as well as other instruments of trade. However, the trade of equities
can also be done via over the counter markets. Additionally, such markets have no physical
location, instead all trading activities are carried over the internet (Li & Song, 2019).
Q4