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Concordia Partners (CP)has Recently Underwritten a Firm Commitment Public Offering

Question 51

Multiple Choice

Concordia Partners (CP) has recently underwritten a firm commitment public offering from Laurentide Resort Inc.(LR) .However, after three customers died and many others were seriously injured while using LR products, large lawsuits have been raised against the firm, and the demand for LR shares has dwindled to nothing.Which of the following provisions might save CP from having to market an unprofitable issue?


A) Green-shoe provision
B) Market out clause
C) Unforeseen events provision
D) As it was a firm commitment offering, CP must absorb any losses from underwriting the issue.

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