Which of the following is correct for stock issued under a firm commitment where the underwriter is to receive an 8% spread?
A. The underwriter's profits are guaranteed to be 8%
B. The underwriter must sell at least 92% of the shares
C. The underwriter receives 8% of all shares
D. The underwriter may suffer a loss on the issue
Ans: D. The underwriter may suffer a loss on the issue
Business
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What will be an ideal response?
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