Which one of these statements is correct?
A) The underwriter's spread is an indirect issue cost.
B) Filing fees are indirect issue costs.
C) Underwriter spreads are directly related to the size of the issue.
D) Investment grade bonds incur lower direct issue costs than junk bonds.
E) An abnormal return is defined as the increase in value of a stock on its first day of trading.
Correct Answer:
Verified
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