Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Kaevyn04 Kaevyn04
wrote...
Go to Answer
Posts: 480
Rep: 17 0
5 years ago
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.
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
Read 178 times
2 Replies
Replies
Answer verified by a subject expert
gturgtur
wrote...
#1
Posts: 373
Rep: 54 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Kaevyn04 Author
wrote...
#2
5 years ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1648 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1169
  
 277
  
 800
Your Opinion
Which is the best fuel for late night cramming?
Votes: 231
Previous poll results: Which of the following is the best resource to supplement your studies: