The most important function of an underwriter is to:

Question

Quizplus · Accepted Answer

The most important function of an underwriter is to buy the issue of securities from the firm and resell them to the public. Underwriters take on the financial risk of purchasing the securities from the firm and then selling them to investors, and they are responsible for ensuring that the securities are priced appropriately and marketed effectively. While underwriters may also assess the firm's capital needs or provide private placement of debt, those functions are not their primary responsibility. Approving the prospectus before distribution to the public is typically the role of regulatory agencies, not the underwriter.

The Most Important Function of an Underwriter Is To