Which of these is defined as the compensation for the expenses and risks incurred by the investment bank to conduct primary sales of stock for a firm?
A) net proceeds
B) gross proceeds
C) underwriter's spread
D) initial public offering

Question

Quizplus · Accepted Answer

The compensation for the expenses and risks incurred by the investment bank to conduct primary sales of stock for a firm is called the underwriter's spread. This is the difference between the price paid by the underwriter to the issuing company and the price at which the securities are sold to the public.

Which of These Is Defined as the Compensation for the Expenses