A fiRm Commitment Arrangement with an Investment Banker Occurs When

A firm commitment arrangement with an investment banker occurs when:

A) the syndicate is in place to handle the issue.
B) the spread between the buying and selling price is less than one percent.
C) the issue is solidly accepted in the market evidenced by a large price increase.
D) the investment banker buys the security for less than the offering price and accepts the
Risk of not being able to sell them.
E) the investment banker sells as much of the security as the market can bear without a price
Decrease.