A bought deal occurs when underwriter buys an issue from a firm and sells the securities to investors without preparing a prospectus.

Name: A bought deal occurs when underwriter buys an issue from a firm and sells the securities to investors without preparing a prospectus.
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A bought deal involves an underwriter buying an entire issue from a firm and then selling it to investors, but a prospectus is typically prepared as part of the regulatory requirements for public offerings.

A Bought Deal Occurs When Underwriter Buys an Issue from a Firm