Which of the following statements regarding firm commitment IPOs is most CORRECT?

A.

For smaller IPOs, the underwriter commonly accepts the deal on this basis.

B.

The underwriter guarantees that it will sell all of the stock at the offer price.

C.

If the entire issue does not sell out, the underwriter is on the hook for the unsold shares.

D.

B and C are both correct.

E.

A, B and C are all correct.