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If an Investment Bank Underwrites an Issue on an "All-Or-None

Question 9

Multiple Choice

If an investment bank underwrites an issue on an "all-or-none" basis,


A) the issuing company receives nothing unless the investment bank sells the complete issue at the offering price.
B) the issuing company receives the guaranteed price even if the investment bank sells none of the issue.
C) the investment bank makes no guarantee and is required to sell to investors only as much of the issue as it can.
D) the investment bank will raise the indicated funds from an issue that is either all stock or all bonds.

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