Investment banks purchase new security issues in the hope of making a profit.This is the act of

Name: Investment banks purchase new security issues in the hope of making a profit.This is the act of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Underwriting is the process of investment banks buying new security issues from companies and guaranteeing the price to the issuing company. The investment bank will then sell these securities to investors, usually at a higher price, thus making a profit.

Investment Banks Purchase New Security Issues in the Hope of Making