In a ________ underwriting arrangement, the underwriter assumes the full risk that shares may not be sold to the public at the stipulated offering price.

Question

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In a firm-commitment underwriting arrangement, the underwriter guarantees to purchase all shares from the issuing company and assumes the full risk of not being able to sell them to the public at the offering price. This is different from a best-efforts underwriting, where the underwriter does not guarantee the sale of all shares and assumes less risk. Private placement is not relevant to this question.

In a ________ Underwriting Arrangement, the Underwriter Assumes the Full