Lansdowne Ltd. needs to raise $10 million and intends to sell additional shares. The companys existing shares
Question:
Why does the investment dealer suggest an offering price less than the trading price?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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With fees of 5 percent Lansdowne Ltd will receive 95 percent of the offer price for each s...View the full answer
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Related Book For 
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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