Which of the Following Statements Regarding Best Efforts IPOs Is

question 46

Multiple Choice

Which of the following statements regarding best efforts IPOs is most accurate?

• A)For smaller IPOs,the underwriter rarely uses a best-efforts IPO.
• B)The underwriter guarantees that the stock will be sold at the offer price.
• C)Often these arrangements have an all-or-none clause: either all of the shares are sold in the IPO,or the deal is called off.
• D)If the entire issue does not sell out,the underwriter is on the hook.
• E)The underwriter sells new issues directly to the public through an online bidding process.