Generally, underwriters provide the following services to the issuing firm:
A)provide advice only.
B)provide advice and buy some or all of the new issue.
C)provide advice and resell the issue to the public.
D)provide advice, buy some or all of the new issue, and resell the issue to the public.

Question

Quizplus · Accepted Answer

Underwriters provide advice to the issuing firm, buy some or all of the new issue, and then resell the issue to the public. This process is known as underwriting and is essential to the initial offering of securities.

Generally, Underwriters Provide the Following Services to the Issuing Firm