Which of the following duties belong to the underwriters of a firm commitment securities offer? I. duty to offer the Green Shoe provision to all investors who buy at the offer price
II) duty to set the offer price
III) duty to distribute the offered shares
IV) duty to purchase any unsold shares

Question

Quizplus · Accepted Answer

The duty to set the offer price (II), distribute the offered shares (III), and purchase any unsold shares (IV) are all responsibilities of underwriters in a firm commitment securities offer. The Green Shoe provision, on the other hand, is an option that allows underwriters to purchase additional shares at the offer price if demand exceeds expectations, but it is not a duty that they must offer to all investors (I). Therefore, the correct answer is C) II, III, and IV only.

Which of the Following Duties Belong to the Underwriters of a Firm