Under the ________ method,the underwriter buys the entire issue,while under the ________ method,the underwriter does not purchase the shares but merely acts as an agent.

Question

Quizplus · Accepted Answer

In the firm commitment method, the underwriter buys the entire issue and bears the risk of selling the securities to the public, whereas in the best efforts method, the underwriter acts as an agent and tries to sell as many securities as possible without committing to buying the entire issue. The other options listed are not related to this concept.

Under the ________ Method,the Underwriter Buys the Entire Issue,while Under