Investment Banking/Stock Markets: An investment banker agrees to a firm commitment offering of 1.2 million shares of Bally stock. The stock is actually sold to the public at $26.00, however, the net proceeds for the investment bank are $25.00 per share.

a) What is the total amount Bally receives?

b) What is the underwriters spread in this case?

c) Why is the secondary stock market important for investment banking?

d) How do we measure the aggregate performance of the secondary stock market?