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kherson [118]
3 years ago
11

The primary difference between an underwriting syndicate member and a selling group member in a firm commitment underwriting is

that A) the price per share paid by the public (POP) is more if purchasing new shares from a selling group member. B) the size of a syndicate member firm will always be larger than a selling group member firm. C) the syndicate member assumes liability for unsold shares and the selling group member does not. D) the securities offered by each differs within the offering.
Business
1 answer:
navik [9.2K]3 years ago
4 0

Answer:

C) the syndicate member assumes liability for unsold shares and the selling group member does not.

Explanation:

In the trading of a security, the dealer's spread refers to the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction.

Simply stated, the bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.

The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. A bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.

The primary difference between an underwriting syndicate member and a selling group member in a firm commitment underwriting is that the syndicate member assumes liability for unsold shares and the selling group member does not.

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bezimeni [28]

Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

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3 years ago
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zheka24 [161]
Third one.............................
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Read 2 more answers
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