The Cost of Issuing an IPO in the U

question 6

Multiple Choice

The cost of issuing an IPO in the U.S. is higher than most other security issuance fees. A typical spread is ________.

• A) 5%
• B) 6%
• C) 7%
• D) 8%

---

Definitions:

Transferor

An individual or entity that transfers rights or property to another, typically as part of a sale or agreement.

Negotiable Instrument

A paper that promises to pay a certain sum of money, which can be demanded at any time or paid at an agreed moment, and identifies the individual responsible for the payment.

Presentment

The act of making a demand for the drawee to pay.

Dishonored

refers to a financial instrument, like a check, being refused by the bank upon presentation for payment due to insufficient funds or other reasons.