The difference between the selling price to the public of a new issue and the net the issuing firm actually receives is known as the _____.
A) negotiating spread
B) underwriting spread
C) bid spread
D) SEC cost

Question

Quizplus · Accepted Answer

The underwriting spread is the difference between the offering price and the price the issuing firm receives from the underwriters for the new issue. This spread covers the expenses and compensation for the underwriters.

The Difference Between the Selling Price to the Public of a New