underwriting

does underwriting commission is paid on firm underwriting shares
Replies (2)

Yes, an underwriting commission has to be paid on a firm underwriting shares for the inherent risk that the entire issue might not be subscribed.

USUALLY FIRM UNDER WRITING IS PART OF GROSS LIABILITY.

SO COMMISSION IS TO BE CALCULATE ON GROSS LIABILITY, WHICH IS ACCEPTED BY THE UNDER WRITER.

 

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