Question: a) What is the difference between an IPO and a secondary issue? What is the difference between a private-placement and a public offering? (7.5 Marks)

a) What is the difference between an IPO and a secondary issue? What is the difference between a private-placement and a public offering? (7.5 Marks) b) What are the risk implications to the investment banker from underwriting on a best- efforts basis versus a firm commitment basis? If you operated a company issuing stock for the first time, which type of underwriting would you prefer? Why? What factors may cause you to choose the alternative? (7.5 Marks)

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