If,for an IPO,circumstances Change and the Issue Becomes Unattractive,the Underwriters

question 57

Multiple Choice

If,for an IPO,circumstances change and the issue becomes unattractive,the underwriters:

• A) charge the company more for raising the funds.
• B) charge the company less for the IPO.
• C) may purchase unsubscribed shares.
• D) offer the shares at a lower price.

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Definitions:

Liquidity

A measure of how quickly and easily assets can be converted into cash without significantly impacting their value.

Par Value

a nominal value assigned to a share of stock or a bond, often used in legal documents.

Common Stock

A type of equity security that represents ownership in a corporation, giving the holder a share in the company's profits through dividends and/or capital appreciation.