After studying this chapter you should be able to:
Explain “underwriting commission”.
Know the provisions of Section 76 of the Companies Act, with respect to payment of underwriting commission.
Understand the terms: Underwriters, Sub-underwriters, Brokers and Managers to issues.
Know the different types of underwriting.
Explain Abatement Clause.
Understand marked, unmarked and firm-underwriting applications.
Determine the liability of the underwriters in respect of an underwriting contract.
Solve problems based on different types of underwriting
Explain the key terms in this chapter.
When a company issues shares, it should receive the amount of minimum ...