Taking advantage of the recent frenzied increases of its stock price, Mycrosoft negotiated a firm commitment underwriting with KoinBase Underwriters. With this type of underwriting, Mycrosoft:
1) accepts the entire risk of the stock offer.
2) knows exactly how many shares will be purchased by the general public during the offer period.
3) is unsure of the total amount of funds they will receive until after the offering is completed.
4) knows up-front the amount of money they will receive from the stock offering.
5) is unsure of the number of shares they will issue until after the offering is completed.