2

Underwriting of Shares and Debentures

LEARNING OBJECTIVES

After studying this chapter you should be able to:

  1. Define “underwriting”.

  2. Explain “underwriting commission”.

  3. Know the provisions of Section 76 of the Companies Act, with respect to payment of underwriting commission.

  4. Understand the terms: Underwriters, Sub-underwriters, Brokers and Managers to issues.

  5. Know the different types of underwriting.

  6. Explain Abatement Clause.

  7. Understand marked, unmarked and firm-underwriting applications.

  8. Determine the liability of the underwriters in respect of an underwriting contract.

  9. Solve problems based on different types of underwriting

  10. Explain the key terms in this chapter.

When a company issues shares, it should receive the amount of minimum ...

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