For your firm's initial public offering of stock,your investment banker has guaranteed a specific amount of funds your firm will receive.This is an example of what type of investment banker compensation?

Question

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Firm commitment is a type of investment banker compensation in which the banker guarantees a specific amount of funds to the issuing firm. This means that the investment banker will purchase the shares from the firm at a set price and then sell those shares to the public, thereby assuming the risk and ensuring that the issuing firm receives the promised amount of funds.

For Your Firm's Initial Public Offering of Stock,your Investment Banker