Which one of the following is a type of underwriting of securities where the final offer price is determined by investor bids?

Question

Quizplus · Accepted Answer

Dutch auction is a type of underwriting of securities where the final offer price is determined by investor bids. In a Dutch auction, the auctioneer starts with a high price and then gradually lowers it until enough investors are willing to buy the securities at that price. The final offer price is then set at the highest price that will allow all the securities to be sold. This method is often used in initial public offerings (IPOs) and can lead to a fairer pricing for both the issuer and the investors.

Which One of the Following Is a Type of Underwriting