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If an Investment Banking Firm Underwrites a Share Issue, the

Question 74

Multiple Choice

If an investment banking firm underwrites a share issue, the


A) risk of being unable to sell the shares stays with the issuing corporation.
B) corporation obtains cash immediately from the investment firm.
C) investment firm has guaranteed profits on the sale of the shares.
D) issuance of shares is likely to be directly to creditors.

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