A financial institution that provides an underwriting service will only on occasion also provide a brokerage and/or dealer service.

Question

Quizplus · Accepted Answer

This statement is incorrect. A financial institution may provide all three services: underwriting, brokerage, and dealer. Underwriting involves assuming the risk of a security issue, brokerage involves acting as an intermediary between a buyer and a seller, and dealer involves trading securities for profits. Many financial institutions provide all three services to their clients.

A Financial Institution That Provides an Underwriting Service Will Only