In an underwritten offer, the risk of selling the issue at a price lower than that promised to the issuer is borne by the investment bank.

Name: In an underwritten offer, the risk of selling the issue at a price lower than that promised to the issuer is borne by the investment bank.
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In an underwritten offer, the investment bank guarantees the sale of the securities at a specific price and takes on the risk of selling them. If the securities sell for less, the investment bank absorbs the loss.

In an Underwritten Offer, the Risk of Selling the Issue