MCQ Detailed View

When a company issues new shares, investment banks often purchase them at a fixed price before selling them to the public. This fixed purchase price is known as the gross proceeds, which represent the total amount raised from selling the securities before deducting any fees, commissions, or expenses. After subtracting underwriting fees and other costs, the company receives the net proceeds. Terms like "non-cumulative proceeds" and "cumulative proceeds" are not used in this context. This makes gross proceeds the correct answer.