The action of guaranteeing a price for a corporation's new issue of stocks is called ________.
A)securitization
B)hedging
C)intermediation
D)underwriting

Question

Quizplus · Accepted Answer

The action of guaranteeing a price for a corporation's new issue of stocks is called underwriting. Underwriters are usually investment banks that help companies to conduct their IPOs (initial public offerings) and support them in raising capital from investors. They ensure that the stock offering will be sold at a fixed price and take the risk of selling the shares to the public.

The Action of Guaranteeing a Price for a Corporation's New