Question

In a public offering of $1 par value stock for$9 per share, the underwriting spread is $1. what is the increase to the issuer’s net worth? Answers 1. thaiduong The underwriter is selling the to the general public for$9 per share. The underwriter keeps a $1 spread for each share sold. The remaining$8 from each share is paid to the issuer.

### What are shares?

Shares are equity ownership units in a corporation. Shares occur as a financial asset for some companies, supplying for an equal share of every residual profits, when any are declared, as in form of dividends.
Some key features regarding the shares are-
• Shareholders of both a stock that does not pay dividends are not entitled to a profit distribution.
• Instead, they expect to profit from the rise as in stock price as the company’s profits rise.
• Shares represent a company’s equity stock, and there are two types of shares: common shares & preferred shares.
• As a result, the terms “shares” & “stock” are frequently used interchangeably.
To know more about the shares, here
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