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1. A company located outside the United States is exploring its options for an Initial Public Offering (IPO) on its national exchange and possibly also on the on the New York Stock Exchange (NYSE). The company is not in compliance with NYSE corporate governance standards, but is otherwise in compliance with all local and US requirements. Which of the following can the company do to make its IPO in both of these markets?

1. Issue their IPO through Global Depository Receipts (GDRs) to avoid the NYSE corporate governance standards
2. Issue their IPO on the over-the-counter part of the NYSE to avoid the NYSE corporate governance standards
3. Cross list the stock on the national exchange and the NYSE without any other changes because corporate governance standards only apply to US-based companies
4. They cannot trade on the NYSE in any way without first complying with corporate governance standards

1. Which type of guarantees between a parent and a subsidiary is only invoked if the subsidiary formally defaults on the guaranteed loan?

1. Performance guarantee
2. Personal guarantee
3. Full guarantee
4. Guarantee of payment or collection

1. Why have financial institutions (FIs) been heavy users of preferred stock?

1. Because most regulatory authorities count preferred stock a regulatory capital
2. Because if the shares are convertible, it adds new capital to the FI when converted
3. Because dividend payments on preferred stock have a popular tax deductibility feature
4. Because financially stable financial institutions have minimal tax advantages for debt

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