Underwriting is an arrangement under which an investment banker agrees to purchase all shares of a public offering at an agreed upon price.

Name: Underwriting is an arrangement under which an investment banker agrees to purchase all shares of a public offering at an agreed upon price.
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

Underwriting involves an investment banker committing to buy the entire issue of shares from the company and then selling them to the public, thus assuming the risk of selling the shares.

Underwriting Is an Arrangement Under Which an Investment Banker Agrees