When a Firm Sells a New Issue Through an Investment

question 74

Multiple Choice

When a firm sells a new issue through an investment banker the costs incurred

• A) are the "give up" expense of the spread plus the legal and accounting fees, printing expense and other small fees.
• B) are the spread to the underwriter which includes all the costs of legal and accounting fees, printing expense and other small fees.
• C) are dependent upon the number of underwriters in the syndicate.
• D) a and c.