A Best Efforts Underwriting Means That the Issuing Firm Accepts

question 219

Multiple Choice

A best efforts underwriting means that the issuing firm accepts the risk that:

• A) The shares will be underpriced.
• B) The flotation costs will increase.
• C) More shares will be sold than desired.
• D) Less money will be raised than desired.
• E) The gross spread will increase.

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