The difference between the price an underwriter pays to a securities' issuer and the price at which the securities are offered for sale is called the

Question

Quizplus · Accepted Answer

The spread is the difference between the price paid by the underwriter to the issuer and the price at which the securities are offered for sale to the public. This is how underwriters make a profit on the sale of securities. Choices A and B are not accurate descriptions of this difference, and choices D and E do not relate to the pricing of securities by underwriters.

The Difference Between the Price an Underwriter Pays to a Securities