___________ is the process by which an investment banking firm assumes the risk of purchasing newly issued securities from a company and reselling those shares to investors in the market.

Question

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Underwriting is the process in which an investment banking firm assumes the risk of purchasing newly issued securities from a company and reselling those shares to investors in the market. The investment banking firm guarantees the offering price to the issuing company and takes full financial responsibility for any unsold shares. This process helps companies to raise funds and expand their business.

___________ Is the Process by Which an Investment Banking Firm