C-ARP2P-2108 Exam Questions and Answers

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NEW QUESTION: 1
Kubilai Co, a listed company, is considering issuing additional equity capital. To ensure that all the new equity shares are sold, Kubilai Co wants to gain assurance that any shares not bought by the general public will be subscribed.
What term correctly describes a firm which agrees to subscribe for the equity shares which are not taken up?
A. A sponsoring member firm
B. An underwriter
C. An issuing house
D. An intermediary
Answer: B


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