What is the difference between an underwriting and a best-efforts sale of securities? Who bears the risk

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What is the difference between an underwriting and a "best-efforts" sale of securities? Who bears the risk associated with each sale if the investment banker overprices a new issue of securities, who sustains the losses?

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Investments An Introduction

ISBN: 978-1305638419

12th edition

Authors: Herbert B. Mayo

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Question Posted: Sep 07, 2016 09:17 AM

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What is the difference between an underwriting and a best-efforts sale of securities? Who bears the risk

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In an underwriting the investment banker guarantees the firm issuing the securities a specified amou...View the full answer

Investments An Introduction

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