The difference between the price an underwriter pays an issuer and the underwriter's offering price is called the:
A)spread.
B)margin.
C)offer differential.
D)firm commitment.
E)underwriting capital.

Question

Quizplus · Accepted Answer

The difference between the price an underwriter pays an issuer and the underwriter's offering price is called the spread. This represents the underwriter's compensation for assuming the risk of selling the securities at a profit.

The Difference Between the Price an Underwriter Pays an Issuer