In the distribution of a new issue, a dealer acting as an underwriter is said to have a:
A.
firm market
B.
divided account
C.
free ride
D.
firm commitment
The Answer Is:
D
This question includes an explanation.
Explanation:
firm commitment. The term underwriting means a guarantee to the issuing corporation. This is a firm commitment, unlike a best efforts offering where there is no guarantee.
Series-7 PDF/Engine
Printable Format
Value of Money
100% Pass Assurance
Verified Answers
Researched by Industry Experts
Based on Real Exams Scenarios
100% Real Questions
Get 65% Discount on All Products,
Use Coupon: "ac4s65"