A ____ is a group of underwriters who agree to underwrite a new issue in order to spread the risk.
A) purchasing syndicate
B) cartel
C) bidding group
D) financial institution

Question

Quizplus · Accepted Answer

A purchasing syndicate is a group of underwriters who agree to share the risk of underwriting a new issue of securities. They work together to purchase the entire issue from the issuer and then sell the securities to investors. This helps to spread the risk and reduce the exposure of any single underwriter.

A ____ Is a Group of Underwriters Who Agree to Underwrite