Which of the Following Is NOT True About the Underwriting

Multiple Choice

Which of the following is NOT true about the underwriting services provided by investment banks?

A) The most common approach to issuing securities in Australia is on a 'best efforts' basis.
B) Share issues require the preparation of a prospectus.
C) In addition to the best efforts contract, issuers can also enter into a standby underwriting agreement.
D) Under the best efforts method, the underwriter will acquire all unsold securities.
E) Investment bank fees for underwriting services are usually in the form of a commission.