The Primary Purpose of a Standby Underwriting Is To

question 94

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:

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