When securities are issued in the primary market, investment banks or underwriters charge a fee called the underwriter spread. Gross proceeds represent the total amount raised before deducting this cost. Once the underwriter spread is subtracted, the remaining amount received... Read More
When securities are issued in the primary market, investment banks or underwriters charge a fee called the underwriter spread. Gross proceeds represent the total amount raised before deducting this cost. Once the underwriter spread is subtracted, the remaining amount received by the issuing company is known as net proceeds. Net proceeds show the actual funds available to the company after issuance expenses.
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