What are the key tasks executed by the underwriter

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In regards to the case of Ferrari IPO:

The underwriting investment bank takes on a central role in the IPO process.

(a) What are the key tasks executed by the underwriter?

(b) What are primary considerations when selecting an underwriter?

(c) Often, multiple underwriters are involved. In the case of Ferrari, a syndicate of 7 underwriters was involved in the IPO. What are the main motivations for syndication?

2 (d) How much compensation was paid to the underwriters of Ferrari? Do you think it is comparable to the average compensation paid to underwriters in US IPOs? (e) What do you understand by 'price-stabilization' activities conducted by the underwriter(s)? Do you think the underwriters were involved in price stabilization of the Ferrari IPO?

Reference no: EM132417206

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