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The Tasks Below Must Be Carried Out in Relation to a New

Question 9

Multiple Choice

The tasks below must be carried out in relation to a new equity issue. Which of them is performed by sub- underwriters?


A) Insure the sponsor and broker in a new issue against a negligence claim
B) Set out to purchase all the shares offered by the company to the market and then sell those shares to institutional investors for a higher price
C) Examine the documentation presented to the investing public to confirm its veracity
D) Agree to purchase a parcel of those shares not taken up by the general investing public

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