Which of These Is Defined as the Compensation for the Expenses

question 109

Multiple Choice

Which of these is defined as the compensation for the expenses and risks incurred by the investment bank to conduct primary sales of stock for a firm?

• A) net proceeds
• B) gross proceeds
• C) underwriter's spread
• D) initial public offering

---

Definitions:

Psychological Defense Mechanism

Strategies employed by the unconscious mind to protect itself from anxiety arising from unacceptable thoughts or feelings.

Freud

Sigmund Freud was a neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Defense Mechanisms

Subconscious tools used to safeguard against distress caused by unwanted or unacceptable emotions and ideas.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.