Difference between net proceeds and gross proceeds is called

A. non-participating spread

B. participating spread

C. under writer spread

D. over writer spread

Answer: Option C

Solution(By Examveda Team)

Difference between net proceeds and gross proceeds is called under writer spread. An underwriting spread is the spread between the dollar amount that underwriters, such as investment banks, pay an issuing company for its securities and the dollar amount that underwriters receive from selling the securities in the public offering.