Question
Describe the three forms underwriters contract to sell an initial public offering. Under which method does the underwriter face the most risk from? Why? Complete
Describe the three forms underwriters contract to sell an initial public offering. Under which method does the underwriter face the most risk from? Why? Complete the table below and match the company with the best form of underwriting. Justify your choice.
| Company Name | Principal Activity | Issue Price | Capital to be raised | Form of Underwriting |
| Coda Minerals Ltd | Mineral exploration & Development | 30c | $6,500,000 |
|
| Adore Beauty Group Limited | Online Cosmetic Retailer | $6.75 | $269,000,000 |
|
| MyDeal.com.au | E-commerce | $1.00 | $40,000,000 |
|
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Advances In Accounting Volume 23
Authors: Philip M J Reckers
1st Edition
0762314257, 9780762314256
