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Which Statement Is FALSE Regarding the Issuance of Securities by Investment

Question 61

Multiple Choice

Which statement is FALSE regarding the issuance of securities by investment banks?


A) The profits for an investment bank are determined by the size of the underwriting spread.
B) The prospectus is the legal document that describes the terms of the IPO.
C) Banks charge higher spreads for seasoned equity offerings than unseasoned equity offerings.
D) Banks charge higher spreads on equity issues than debt issues.

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