Which One of the Following Is Correct If an Underwriter

question 100

Multiple Choice

Which one of the following is correct if an underwriter is selling stock to the public at $40 per share, the underwriter receives a $3 per share spread, 2 million shares are sold, and the issuing firm receives $111 million from the underwriter?

• A) The underwriter's spread was greater than $3.
• B) The issue appreciated in price immediately.
• C) The issue included 3 million shares.
• D)The stock was issued on a best efforts basis.

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Definitions:

Intrinsic Motives

Inner drives or motivations to perform an activity for its own sake, because it is interesting or satisfying in itself.

Hierarchy of Needs

A theory proposed by Abraham Maslow that suggests human actions are motivated by an ascending order of needs, starting from basic physiological needs to self-actualization.

Truly Motivated

A state where an individual has authentic and intrinsic motivation to perform actions or pursue goals, driven by personal interest and values.

Extrinsic Rewards

External factors that include salary and other benefits or goods.