Question

In bid pricing which bid will be selected. *
2 points
Moderate priced bid
Lower priced Bid
Higher priced bid
None of these​

Answer 1

Explanation:

The highest price is called cap price and the lowest is floor price. Investors have to bid in this price range. The issue price—called cut-off price—is decided based on the bids received. Only bidders who quoted higher than or equal to this price can get allotment of shares.