In the former case the issue is handled by a syndicate of US-based banks and the bonds are offered to investing public by means of a prospectus at an agreed issue price.
The efficient market hypothesis (EMT) was certainly making the rounds through academia and the investing public at the time.
The underwriter guarantees the issuing corporation a specific price for the entire bond issue and makes a profit by selling the bonds to the investing public at a higher price.
The investing public - the people putting the money in - they've really got to look at those Numbers. -okay.
