Question
Please mark the only incorrect statement about the Initial Public Offering (IPO) or new stock issue by an investment bank: a. in a best efforts
Please mark the only incorrect statement about the Initial Public Offering (IPO) or new stock issue by an investment bank:
a. | in a best efforts IPO, the lead underwriter has the obligation to take the deal to the market and stabilize the share price in the secondary market if needed | |
b. | in a successful IPO, the underwriters have the option to issue 15% more stock than the original offer size | |
c. | the underwriters can distribute the red herring or preliminary prospectus for the deal before they bring the new issue to the market | |
d. | the lead underwriter will file the new deal with the SEC
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