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Last Year IBM Issued Shares to Raise Funds for Expansion

Question 49

Multiple Choice

Last year IBM issued shares to raise funds for expansion. The investment bank acquired IBM's entire issue, which it distributed via a syndicate. Which of the following best describes this action? The shares were issued in the:


A) primary market via an underwritten arrangement.
B) secondary market via a best-efforts arrangement.
C) primary market via a best-efforts arrangement.
D) secondary market via an underwritten arrangement.

Correct Answer:

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