During the underwriting process, the investment bank receives payment for all of the following except: A) flotation costs. B) legal costs. C) Federal Reserve costs. D) accounting costs. E) marketing costs.

Question

Quizplus · Accepted Answer

Federal Reserve costs are not related to the underwriting process and therefore, investment banks do not receive payment for them. The other options, such as flotation costs, legal costs, accounting costs, and marketing costs, are all related to the underwriting process and the investment bank receives payment for them.

During the Underwriting Process, the Investment Bank Receives Payment for All