From the investment banker's point of view,the major reason syndicates are formed in the distribution of large issues is for the purpose of

Question

Quizplus · Accepted Answer

The major reason syndicates are formed in the distribution of large issues is to reduce the underwriter's risk. By forming a syndicate, the underwriter can share the risk with other members, thereby reducing their exposure to any potential losses. While improving liquidity and geographic distribution may be additional benefits of forming a syndicate, they are not the primary reason for doing so. Improving brand recognition is also not a reason for forming a syndicate.

From the Investment Banker's Point of View,the Major Reason Syndicates