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The Primary Purpose of a Standby Underwriting Is To

Question 232

Multiple Choice

The primary purpose of a standby underwriting is to:


A) Ensure that all investors who desire shares in the offering are able to purchase them.
B) Guarantee that a secondary underwriter can fulfill the responsibilities of the primary underwriter should the primary underwriter be unable to fulfill its obligations to the issuer.
C) Have additional shares of stock registered with the OSC in case of an oversubscription.
D) Ensure the issuer sells the entire offering of securities.
E) Allow the market price to be adjusted downward if needed to sell the desired number of shares.

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