What term describes the difference between the gross proceeds and the net proceeds?

World Stock Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
World Stock Marketsfinance-mcqs › world-stock-markets
Published
13 May 2023
Last updated
28 May 2026

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Explanation

The difference between the gross amount raised and the net amount received by the issuer is known as the underwriting spread. This spread represents the fee or commission retained by the underwriters for their services.

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