In the distribution of a new issue, a dealer acting as an underwriter is said to have a:
A)firm market
B)divided account
C)free ride
D)firm commitment

Name: In the distribution of a new issue, a dealer acting as an underwriter is said to have a: A)firm market B)divided account C)free ride D)firm commitment
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Quizplus · Accepted Answer

firm commitment. The term underwriting means a guarantee to the issuing corporation. This is a firm commitment, unlike a best efforts offering where there is no guarantee.

In the Distribution of a New Issue, a Dealer Acting