Which of the Following Is Correct If an Underwriter Is

question 69

Multiple Choice

Which 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:

Variable

Any characteristic, number, or quantity that can be measured or counted and can vary among subjects in a study.

Interval

A range between two points or numbers, typically used to specify the extent of a measurement or the difference between numbers.

Nominal

Denotes categories without numerical importance, used to describe data that represents names or labels.

Ordinal

Pertaining to a type of data or scale that shows an order or rank among values, where the intervals between values are not necessarily consistent.