The Primary Purpose of a Standby Underwriting Is To

question 259

Multiple Choice

The primary purpose of a standby underwriting is to:

• A) Ensure that all investors who desire shares in the offering are able to purchase them.
• B) Guarantee that a secondary underwriter can fulfill the responsibilities of the primary underwriter should the primary underwriter be unable to fulfill its obligations to the issuer.
• C) Have additional shares of stock registered with the OSC in case of an oversubscription.
• D) Ensure the issuer sells the entire offering of securities.
• E) Allow the market price to be adjusted downward if needed to sell the desired number of shares.

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Definitions:

Fixation

In psychoanalytic theory, an obsessive focus or attachment to a developmental stage, idea, or aspect of life that may hinder psychological development.

Childhood Stage

A developmental period in a person's life that spans from birth to the onset of adolescence, characterized by rapid physical, cognitive, and emotional growth.

Libido

In psychoanalytic theory, libido is the energy of the sexual drive as a component of the life instinct.

Phallic Stage

A stage in Freudian psychosexual development, when a child's focus of pleasure is on the genital area.