When the issuer announces the terms of the issue and interested parties submit bids for the entire issue, the arrangement is referred to as:
A) Bought deal.
B) Auction process.
C) Firm commitment underwriting.
D) Underwriting.
E) None of the above.

Question

Quizplus · Accepted Answer

The auction process is where the issuer announces the terms of the issue and interested parties submit bids for the entire issue. This method is often used for government securities.

When the Issuer Announces the Terms of the Issue and Interested