Which of the below statements about issue discounts is NOT correct? Issue Discounts:

a.

The issue discount is only available to sophisticated investors with high net worths.

b.

The discount widens in times of uncertainty

c.

Is the price difference between the price the stock is offered to investors and the market price as quoted on the stock market.

d.

The larger the discount the more incentive there is for investors to participate in a secondary capital raising.

e.

During times of uncertainty investors require greater incentives to participate in any capital raising