If one bank is reluctant to take full responsibility for a new issuance, the bank may form a __________________, which is a group of investment banks, each of which underwrites a portion of the new offering.

Question

Quizplus · Accepted Answer

The scenario described refers to a syndicate, which is a group of investment banks that come together to share the risk and underwrite a portion of a new security issuance. This allows for a wider distribution of the risk and allows for larger offerings to take place. Risk partnership, joint investment, and private placement do not accurately describe this scenario.

If One Bank Is Reluctant to Take Full Responsibility for a New