Which of the Following Statements Regarding Firm Commitment IPOs Is

Which of the following statements regarding firm commitment IPOs is most accurate?

A) If the entire issue does not sell out,the remaining shares must be sold at a lower price and the underwriter must take the loss.
B) The underwriter does not guarantee that the stock will be sold,but instead tries to sell the stock for the best possible price.
C) It is the least common underwriting arrangement.
D) Rather than setting the offer price,the underwriter lets the market determine the price through bids from potential investors.
E) Often these arrangements have an all-or-none clause: either all of the shares are sold in the IPO,or the deal is called off.