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Underwriters generally: Pay a spread to the issuing firm. Provide only best efforts underwriting in the U.S. Accept the risk of selling the new securities
Underwriters generally:
Pay a spread to the issuing firm. |
Provide only best efforts underwriting in the U.S. |
Accept the risk of selling the new securities in exchange for the gross spread. |
Market and distribute an entire issue of new securities within their own firm. |
Pass the risk of unsold shares back to the issuing firm via a firm commitment agreement. |
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