Which of the Following Best Defines the Term Overallotment Option

question 3

Multiple Choice

Which of the following best defines the term overallotment option?

• A) Loans, usually long term in nature, provided directly by a limited number of investors.
• B) Allows shareholders to purchase unsubscribed shares in a rights offering at the subscription price.
• C) An underwriting provision that permits syndicate members to purchase additional shares at the original offering price.
• D) The part of the underwriting contract that specifies how long insiders must wait after an IPO before they can sell stock.
• E) A company's first equity issue made available to the public. Also an unseasoned new issue.

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Definitions:

Strict Tort Liability

A legal doctrine that holds a party responsible for damages caused by their actions or products, without the need for proving fault or negligence.

Product Line

A group of related products manufactured by a company, characterized by having similar functions or being sold to the same customer groups.

Consolidations

refer to the process of combining two or more legal cases, accounts, or entities into a single entity for efficiency or to facilitate a unified decision-making process.

Obsolete

describes anything that is out of date or no longer in use, often because it has been replaced by newer versions or technologies.