CISI Regulatory Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 580

What is the main role of a marketing bank in an offer for sale?

To issue bonds to the public

To receive and redistribute shares from the company

The main role of a marketing bank in an offer for sale is to receive and redistribute shares from the company. In an offer for sale, a marketing bank acts as an intermediary between the company offering the shares and the investors wishing to purchase them. The bank typically works to facilitate the sale of the shares by gathering the shares from the company and then distributing them to the market, which can include individual and institutional investors. This involvement can also encompass setting the price of the shares, providing underwriting services, and ensuring that the offering is well-marketed to attract potential buyers.

The other options pertain to different functions that banks or financial institutions may engage in but do not align with the specific role of a marketing bank in an offer for sale. For instance, issuing bonds is a separate function related to debt financing, while managing investment portfolios involves handling the assets of clients, and conducting share buybacks pertains to a company's strategy to repurchase its own shares from the market. Therefore, these activities are not directly tied to the primary purpose of a marketing bank within the context of an offer for sale.

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To manage investment portfolios

To conduct share buybacks

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