Because of the low risks associated with the underwriting of securities, an underwriting syndicate and a selling group are rarely formed.

Question

Quizplus · Accepted Answer

This statement is false. Underwriting syndicates and selling groups are commonly formed, especially for larger securities offerings, to help spread the risk among multiple financial institutions and to help distribute the securities to a wider range of potential investors.

Because of the Low Risks Associated with the Underwriting of Securities