You hear on the news that an underwriter is participating in an equity issue on a standby basis. Thus, you know this must be a (n) ______________.

Name: You hear on the news that an underwriter is participating in an equity issue on a standby basis. Thus, you know this must be a (n) ______________.
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Question

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In a rights offering, existing shareholders are given the opportunity to purchase additional shares, and a standby underwriter agrees to purchase any shares not bought by the shareholders.

You Hear on the News That an Underwriter Is Participating