Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?

Question

Quizplus · Accepted Answer

In a firm commitment underwriting, the underwriters guarantee to purchase and resell all of the shares being offered. This means that if any shares are left unsold, the underwriters must purchase them and assume full responsibility for any losses incurred as a result of that purchase.

Which One of the Following Terms Is Defined as an Underwriting