The Issue Process Where Investors Submit Bids for a New

question 20

Multiple Choice

The issue process where investors submit bids for a new issue and the shares in an IPO are allocated to the highest bidders until the entire issue is sold is called a

• A) best efforts offer
• B) Dutch auction
• C) secondary offering
• D) firm commitment offer

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Definitions:

Personal Selling

A sales method involving direct interaction between a salesperson and a customer to fulfill the customer's needs and encourage purchases.

Prospective Buyer

An individual or entity showing interest in purchasing a product or service, often in the preliminary stages of the buying process.

Direct Marketing

A form of advertising where companies communicate directly with customers through a variety of media including cell phone text messages, email, websites, online adverts, database marketing, fliers, and catalog distribution.