Biology Forums - Study Force

Other Fields Homework Help Finance Topic started by: Kaevyn04 on Jul 7, 2019



Title: How does the size of an issue affect the fees charged by underwriters?
Post by: Kaevyn04 on Jul 7, 2019
How does the size of an issue affect the fees charged by underwriters?

▸ Large issues have substantially larger direct costs and, thus, must charge a larger spread in order to be profitable for the underwriter.

▸ Although large issues generally have a smaller spread, the large number of shares released means that the total fees are somewhat larger than for smaller issues.

▸ Large issues generally have a similar spread to small issues and thus attract much greater fees.

▸ Large issues have a reduced spread, which means that the total fees are generally the same as for smaller issues.


Title: How does the size of an issue affect the fees charged by underwriters?
Post by: gtur on Jul 7, 2019
Content hidden


Title: How does the size of an issue affect the fees charged by underwriters?
Post by: Kaevyn04 on Jul 7, 2019
Thanks