In which type of underwriting does the company issuing new shares bear none of the risk that the market will not buy its stock at the asking price?

Question

Quizplus · Accepted Answer

In a firm commitment underwriting, the underwriter buys all the shares from the company and resells them to the public. If the shares cannot be sold at the asking price, the underwriter bears the risk, not the company.

In Which Type of Underwriting Does the Company Issuing New