In a securities underwriting a participating firm is said to be liable severally but not jointly. What is this type of underwriting is called?
A)a Western account
B)an Eastern account
C)a best efforts offering
D)an all or none offering

Question

Quizplus · Accepted Answer

a Western account. In a Western account each underwriter has a divided liability and is responsible only for his portion of the issue. In Eastern accounts, generally used for municipal issues, the underwriter is responsible for a percentage of any unsold portion. This is called an undivided liability.

In a Securities Underwriting a Participating Firm Is Said to Be