Explain why the underwriting spread on IPOs averages about 7% of the offering price whereas the spread

Question:

Explain why the underwriting spread on IPOs averages about 7% of the offering price whereas the spread on a seasoned offering of averages less than 5%?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...