The process of purchasing newly issued shares from the issuer and reselling those shares to the general public is called:
A)underwriting.
B)capitalizing.
C)securing.
D)brokering.
E)deploying.

Question

Quizplus · Accepted Answer

Underwriting is the process of purchasing newly issued shares from the issuer and reselling them to the general public. This process is typically done by investment banks or underwriters, who act as intermediaries between the issuer and the public. The underwriters purchase the shares from the issuer at a discount and then sell them to the public at a higher price, thus making a profit.

The Process of Purchasing Newly Issued Shares from the Issuer