Question

the commission cannot exceed % of the issue price of debentures
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Answer 1

Answer:

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Explanation:

According to Companies Act, underwriting commission should not exceed 5 per cent of the nominal value of a share and 2½ per cent in the case of debentures. ... Thus, if shares and debentures could not be sold by the company, the broker will not buy the securities which have not been subscribed for.