If an Underwriter Buys Securities from an Issuing Firm and Sells

Multiple Choice

If an underwriter buys securities from an issuing firm and sells them directly to a small number of investors, the underwriter has:

A) Used best efforts underwriting.
B) A bought deal.
C) A firm commitment offer.
D) A larger bid-ask spread on the securities.
E) Used regular underwriting to sell the securities.