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Neporo4naja [7]
2 years ago
11

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as:___

__.
Business
1 answer:
horsena [70]2 years ago
4 0

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as The gross spreads.

Gross spread is the distinction among the underwriting fee obtained by the issuing business enterprise and the actual rate offered to the making an investment public. In different words, the gross spread is the monetary institution's reduce or benefit from the IPO listing.

The gross proceeds suggest the overall sum of money the syndicate increases from the primary traders. add the underpricing to the gross proceeds to obtain the marketplace price presented.

An underwriting unfold is the distinction among the greenback amount that underwriters, which includes investment banks, pay an issuing for its securities and the greenback quantity that underwriters obtain from promoting the securities in a public imparting. In one of the maximum common definitions, the spread is the space among the bid and the ask charges of a protection or asset, like a inventory, bond, or commodity.

Learn more about gross spreads here:-brainly.com/question/16259338

#SPJ4

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The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because when th
erma4kov [3.2K]

Answer:

The correct answer is option c.

Explanation:

A firm is able to maximize its profit when the marginal revenue earned is equal to the marginal cost incurred. This is true for all market structures whether competitive or imperfect competition.  

When the output is produced at the point where marginal revenue and marginal cost are equal, it implies that the last unit produced is adding more to revenue than to costs. And the production of the last unit is increasing profits or reducing losses.  

At this point, the marginal profit is zero when the marginal profit becomes negative it implies that the total profit is decreasing. so for profit maximization marginal profit should be zero or marginal revenue should be equal to marginal cost.

7 0
4 years ago
Manuel is a lawyer who enjoys apples and pears. suppose that the price of apples increases. as a result, the purchasing power of
Jlenok [28]

This phenomenon is known as the <u>"income"</u> effect.

The income effect refers to an adjustment in the interest of a decent or administration, instigated by an adjustment in the purchasers' optional wage.  

The income effect is the impact on real income when value changes - it tends to be certain and negative. Beneath, as value falls, and expecting ostensible salary is steady, a similar ostensible pay can purchase a greater amount of the great - thus interest for this (and different products) is probably going to rise.

7 0
4 years ago
g If the government requires a natural monopoly to price at marginal cost, (there are no typo's in this question) Select one: a.
Leokris [45]

Answer:

monopoly firms will operate at a loss because P =MC.

Explanation:

In the case when the government needed to regulate the natural monopoly to price at the marginal cost so here the firm i.e. monopoly would operate at the loss because the price is equivalent to the marginal cost

i.e.

P = MC

Therefore as per the given situation the option d is correct

3 0
3 years ago
Ivanhoe Sports Authority purchased inventory costing $ 26 comma 000 by signing a 6​%, ​six-month, short-term note payable. The p
anyanavicka [17]

Answer:

Explanation:

The journal entries are shown below:

a. Inventory A/c Dr $26,000

       To Notes payable A/c $26,000

(Being inventory is purchased for signing the short term notes payable)

b. Interest expense A/c Dr $780

  Notes payable A/c Dr $26,000

               To Cash A/c $                       $26,780

(Being cash is paid on maturity)

The interest expense is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $26,000 × 6% × (6 months ÷ 12 months)

= $780

The 6 months is calculated from March 1 to September 1

8 0
3 years ago
A company's horizontal scope refers to Multiple choice question. the extent to which the company participates in the various act
Gekata [30.6K]

Answer:

the various product and services that it offers.

Explanation:

Horizontal scope or integration can be regarded as process that involves increasing of production of goods or services , and this increase reflect at the same part of all supply chain

by a company . This can be done by

a company merger, internal expansion or acquisition. This process can result into if vast majority of the market for that particular product/ service is been captured by the company.

It should be noted company's horizontal scope refers to the various product and services that it offers.

5 0
3 years ago
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