One of the main reasons that investment banks are used to underwrite initial public offerings is they:

Name: One of the main reasons that investment banks are used to underwrite initial public offerings is they:
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Investment banks help to reduce the problem of adverse selection by providing valuable information to investors about the company going public. This helps to mitigate the risk of investors purchasing shares in a company that may not be as profitable or successful as initially perceived.

One of the Main Reasons That Investment Banks Are Used