________ assume the risk of issuing a new stock in the hope of earning profits on its sale.

Question

Quizplus · Accepted Answer

Underwriters assume the risk of issuing a new stock by purchasing the securities at a fixed price and reselling them to the public at a higher price, hoping to make a profit on the difference between the purchase price and the selling price. Stock brokers execute trades on behalf of clients, securities dealers buy and sell securities for their own account or for clients, stock speculators buy and sell stocks to make quick profits, and reinsurers assume the risk of insurance policies written by primary insurers.

________ Assume the Risk of Issuing a New Stock in the Hope