A bank specializes in underwriting new issues by small firms. On a recent offering of another company, the terms were as follows:
Price to public: $2 per share
Number of shares: 3 million
Proceeds to the other company: $4,000,000
The out-of-pocket expenses incurred by the bank in the design and distribution of the issue were $500,000. What profit or loss would the bank incur if the issue were sold to the public at these terms?