Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as
A
least effort sale
B
effortless sale
C
negotiated sale
D
negotiated sale
Correct Answer: negotiated sale
Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as negotiated sale. A negotiated sale is when the issuer and an underwriter negotiate the terms of municipal bonds in lieu of groups bidding to establish the terms.