Underwriter spread of stock is added to net proceeds to calculate value of

A. over writer spread

B. Gross proceeds

C. participation proceeds

D. non participation proceeds

Answer: Option B

Solution(By Examveda Team)

Underwriter spread of stock is added to net proceeds to calculate value of Gross proceeds. Gross Proceeds means the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for Selling Commissions, volume discounts, any marketing support and due diligence expense reimbursement or Organization and Offering Expenses.