Which of the Following Parties Will Likely Benefit the Most

question 119

Multiple Choice

Which of the following parties will likely benefit the most from the overpricing of a new, IPO common stock issue handled on a firm-commitment basis?

• A) Existing bondholders.
• B) The underwriter.
• C) New shareholders who purchase stock during the aftermarket.
• D) The issuing firm.
• E) New shareholders who purchase stock from the underwriting syndicate.

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