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Frauds and Scams > There Are Two Basic Methods By Which Underwriters Are Chosen By Issuers And Underwriting Spreads Are Determined
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There Are Two Basic Methods By Which Underwriters Are Chosen By Issuers And Underwriting Spreads Are Determined Defined
Negotiated Underwriting and Competitive Bid underwriting. Generally, the negotiated method is used in corporate equity issues and corporate debt issues. The competitive bidding method is used by municipalities and public utilities.
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