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A Situation in Which the Underwriter Does Not Guarantee the Stock

Question 4

Multiple Choice

A situation in which the underwriter does not guarantee the stock will be sold,but instead tries to sell the stock for the best possible price is:


A) a primary offering.
B) a secondary offering.
C) an auction IPO.
D) a best-efforts IPO.
E) a firm commitment IPO.

Correct Answer:

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