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Author Question: How does the size of an issue affect the fees charged by underwriters? (Read 16 times)

cagreen833

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on: Jul 9, 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.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by cagreen833 on Jul 9, 2019

sarah_brady415

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cagreen833

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Reply 2 on: Jul 9, 2019
Great answer, keep it coming :)

gcook

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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