Defines the term overallotment option

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Question 1: Which of the following best defines the term overallotment option?

Select one:

Option A. The part of the underwriting contract that specifies how long insiders must wait after an IPO before they can sell stock.

Option B. A company's first equity issue made available to the public. Also an unseasoned new issue.

Option C. Allows shareholders to purchase unsubscribed shares in a rights offering at the subscription price.

Option D. Loans, usually long term in nature, provided directly by a limited number of investors.

Option E. An underwriting provision that permits syndicate members to purchase additional shares at the original offering price.

Reference no: EM132499992

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