Which of the following is not an important consideration when an underwriter is trying to establish the price for an initial public offering?

Question

Quizplus · Accepted Answer

Providing the absolute maximum price possible for the issuer of the shares is not a responsible or ethical consideration for an underwriter. The underwriter must balance the need to provide a fair price for the issuer with ensuring that investors are willing to purchase the securities at a reasonable price. The underwriter's reputation, the value of the firm, and the demand for the securities of the issuer are all important considerations when determining the IPO price.

Which of the Following Is Not an Important Consideration When