From the investment banker's point of view,the major reason syndicates are formed in the distribution of large issues is for the purpose of:

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The major reason syndicates are formed in the distribution of large issues is to reduce the underwriter's risk. By forming a syndicate, the investment banker can spread the risk of the large issue among multiple underwriters, thereby reducing their own risk. This allows the investment banker to take on larger deals than they would be able to handle alone. Improving liquidity, geographic distribution, and brand recognition may be additional benefits of using a syndicate, but they are not the main reason for forming one.

From the Investment Banker's Point of View,the Major Reason Syndicates