SIE (Securities Industry Essentials) Practice Exam

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Which of the following is NOT a role of an investment banker?

Helping companies issue new shares of stock
Advising companies on mergers and acquisitions
Managing investment portfolios
Establishing the appropriate price of the stock or bond in the secondary markets.

The correct answer is: Establishing the appropriate price of the stock or bond in the secondary markets.

An investment banker's roles include helping companies issue new shares of stock, advising companies on mergers and acquisitions, and managing investment portfolios. Establishing the appropriate price of a stock or bond in the secondary markets is typically done by analysts and traders, not investment bankers. While investment bankers may provide advice on pricing strategies and market conditions, they are not directly responsible for determining the price of a stock or bond in the secondary markets.