Question

The cost of the time managers spend on an issue of securities is a direct cost...

The cost of the time managers spend on an issue of securities is

  • a direct cost of the issue and must be reported on the prospectus.

  • an indirect expense of the issue.

  • reimbursed when the issuer invokes the Green Shoe option.

  • not considered an expense of the issue because it is a sunk cost.

  • considered to be part of the abnormal return.

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