Suppose a well-known financial holding company agreed to be the underwriter for a new stock issue. After

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Suppose a well-known financial holding company agreed to be the underwriter for a new stock issue. After guaranteeing the price to the issuing company but before selling the stocks, a scandal surrounding the business practices of the holding company is revealed. How would you expect this scandal to affect (a) the financial holding company and (b) the issuing company?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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