Why do corporations employ investment bankers?

Answers must be in detail:

  1. (LO 11.1) Why do corporations employ investment bankers?
  2. (LO 11.1) Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?
  3. (LO 11.1) Explain market stabilization.
  4. (LO 11.3) Briefly describe the process of competitive bidding and discuss its relative advantages and disadvantages.
  5. (LO 11.5) Briefly describe how investment banking is regulated.
  6. (LO 11.7) What is a short sale?
  7. (LO 11.7) What is program trading?
  8. (LO 11.9) What factors differentiate a good market from a poor market?
  9. (LO 11.10) What are American depository receipts (ADRs)?
  10. (LO 11.11) Why is it illegal to trade on insider information?