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  3. 7. underpricing a new securities issue but. helps

7. Underpricing a new securities issue but. Helps the underwriter speed up the sale and...

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Finance

7. Underpricing a new securities issue but.

Helps the underwriter speed up the sale and the whole of it; hurts the issuer as more securities must be issued

None of the choices

Helps the underwriter increase its reputation; hurts the issuer reputation

Helps the underwriter capture a bigger bid-ask spread; helps the issuer get the funds faster, which in turn makes them happier

8. Once new securities get prices and trade on an exchange

The trading no longer involves the investment bank that helped with issuance

The prices become so volatile that the original issuer of the securities has to come in to buy and sell its own securities to calm the market

The prices continue to rise and fall

Their prices are stable thanks to the underwriters expertise and reputation

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