Firm commitment underwriting is far more prevalent for large issues than is best-efforts underwriting. Smaller issues probably

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Firm commitment underwriting is far more prevalent for large issues than is best-efforts underwriting.

Smaller issues probably primarily use best efforts because of the greater uncertainty of these issues. For an offering of a given size, the direct expenses of best-efforts underwriting and firm commitment underwriting are of the same magnitude. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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