The range of underwriting spreads for SEOs, based on 2005

Question

The range of underwriting spreads for SEOs, based on 2005 - 2007 data, is approximately

Quizplus · Accepted Answer

Based on the given data, the range of underwriting spreads for SEOs is approximately 2% to 6%. This means that the fees charged by underwriters for managing and selling new shares in a SEO typically range from 2% to 6% of the gross proceeds of the offering. Options A, B, and D are all outside of this range and therefore incorrect. Based on the data from 2005 to 2007, the range of underwriting spreads for SEOs is approximately 2% to 6%. This means that the difference between the price at which the securities are sold to investors and the price paid to the issuer is between 2% and 6%.