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    Book building IPO Method versus Auction Method

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    A firm can offer its securities to the highest bidder on a competitive offer basis, or it can negotiate directly with an underwriter. Please differentiate between the two methods.

    © BrainMass Inc. brainmass.com October 9, 2019, 7:45 pm ad1c9bdddf
    https://brainmass.com/business/initial-public-offering/128040

    Solution Preview

    In America IPOs are typically performed using a book building method (firm can negotiate directly with an underwriter), where an investment bank is hired to ...

    Solution Summary

    The following two methods are differentiated:
    1) A firm can offer its securities to the highest bidder on a competitive offer basis, or
    2) It can negotiate directly with an underwriter.

    $2.19