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Management · Q561

International Finance and Treasury

Graduate and Post Graduate · Management · question 561

Q561

Fixed price at which stock is purchased from issuer by investment banks is called

A.
non-cumulative proceeds
B.
net proceeds
Answer
C.
Gross proceeds
D.
cumulative proceeds

Answer: Option B

Solution

Answer: Option B
Solution:
Fixed price at which stock is purchased from issuer by investment banks is called net proceeds. Net proceeds are the amount the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds.