Gee Whiz Underwriters retains the difference between its buying price and its offering price on new securities.What is this amount called?

Question

Quizplus · Accepted Answer

The amount retained by Gee Whiz Underwriters between its buying price and its offering price on new securities is called the spread. This represents their profit margin and compensates them for the risk and costs associated with underwriting the securities.

Gee Whiz Underwriters Retains the Difference Between Its Buying Price