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1 year ago

One reason that underpricing of new issues occurs more frequently than overpricing is that?

1 answer:

7 0

One reason that underpricing of new issues occurs more frequently than overpricing is that underwriters want to reduce the risk of a firm commitment. Therefore, Option A is correct.

<h3>What is underwriting?</h3>

Some major financial institutions, including banks, insurance companies, and investment firms, offer underwriting services in which they guarantee payment in the event of damage or financial loss and accept the financial risk for liability resulting from such guarantee.

Therefore, One reason that underpricing of new issues occurs more frequently than overpricing is that underwriters want to reduce the risk of a firm commitment. Option A is correct.

Learn more about underwriting:

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"Your question is incomplete, probably the complete question/missing part is:"

A. underwriters want to reduce the risk of a firm commitment.

B. the demand for a new issue is typically too high.

C. underwriters earn low rates of return.

D. issuing firms demand that equity be underpriced.

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B. Destination contract.

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3 years ago

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Dominic sues Gemalt, Inc. for negligence. At trial, Dominic testifies that he heard Francis, a manager at Gemalt, say that he th

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Option "A" is the correct answer to the following statement.

Explanation:

It is a situation of evidence hearsay. Eyewitness portraiture in court was not allowable unless it is provided by a law body or rule. So, even if a declaration is very scuttlebutt, if such an exception relates, it is still may be allowable.

In this situation, Dominic's statement against Francis would not be submitted as evidence, because it would be rumor.

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3 years ago

Write an essay of a Products or services you would like to create during this

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Answer:

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Seeing how cleaning is and should be apart of our everyday life system it is important and necessary that we have more products and services that are created. This is one of the most essential things that we need right now.

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4 years ago

Drm refers to a combination of ________ for protecting digital content.

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4 years ago

A man has $34,000 to invest. He invests some of the money at 5% and the balance at 4%. His total annual interest income is $1545

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Answer:

Amount invested @ 5% = $18,500

Amount invested @ 4% = $34,000 - $18,500 = $15,500

Explanation:

Provided we have the following details,

Total investment = $34,000

Let amount invested @ 5% = x

Then, amount invested at 4% = $34,000 - x

Thus, $(x \times 0.05) + (($34,000 - x) \times 0.04) = $1,545$

0.05x + $1,360 - 0.04x = $1,545

0.01x = $1,545 - $1,360 = $185

x = $185/0.01 = $18,500

Thus, amount invested @ 5% = $18,500

Amount invested @ 4% = $34,000 - $18,500 = $15,500

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3 years ago