Vidyalelo
Management · Q380

International Finance and Treasury

Graduate and Post Graduate · Management · question 380

Q380

Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as

A.
least effort sale
B.
effortless sale
C.
negotiated sale
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as negotiated sale. A negotiated sale is when the issuer and an underwriter negotiate the terms of municipal bonds in lieu of groups bidding to establish the terms.