In an initial public offering, the financial intermediary offers two different methods of the IPO process. Under firm commitment method they:

Group of answer choices

buy the stock from the issuing company upfront at a fixed price and resell the issue to the public.

agree to help the firm sell the stock to the public and promise to make best efforts so sell these at a favorable price.

commit to the issuing firm to buy the leftover stocks at a negotiated price after the IPO

agrees to help the firm sell the stock at a favorable price and finds the best marketing arrangement for the investment-banking firm.