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

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The difference between the price an underwriter pays to an issuer and the price at which the securities are offered for sale is called the spread. It represents the profit or compensation for the underwriter's services. This spread covers the underwriter's costs, such as due diligence, legal fees, and administrative expenses, as well as the underwriter's profit margin.

The Difference Between the Price an Underwriter Pays to a Securities