When an investment bank ________ securities,it guarantees a price for a corporation's securities and then sells them to the public.
A)underwrites
B)undertakes
C)overwrites
D)overtakes

Question

Quizplus · Accepted Answer

Underwriting is a process where an investment bank guarantees a price for a corporation's securities and then sells them to the public. This ensures that the corporation gets the desired funds while the investment bank earns a profit from the difference between the guaranteed price and the selling price. Undertaking, overwriting, and overtake are not related to this specific process.

When an Investment Bank ________ Securities,it Guarantees a Price for a Corporation's