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If an Underwriter Buys Securities from an Issuing Firm and Sells

Question 143

Multiple Choice

If an underwriter buys securities from an issuing firm and sells them directly to a small number of investors, the underwriter has:


A) Used best efforts underwriting.
B) A bought deal.
C) A firm commitment offer.
D) A larger bid-ask spread on the securities.
E) Used regular underwriting to sell the securities.

Correct Answer:

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