A corporation will often utilize the services of an underwriter to sell its stock.

Question

Quizplus · Accepted Answer

This statement is true. A corporation will often use the services of an underwriter, such as an investment bank, to help sell its stock to investors through an initial public offering (IPO) or other public offering. The underwriter helps the corporation determine an appropriate price for the stock, helps market the stock to potential buyers, and may even buy the stock themselves to help ensure a successful offering.

A Corporation Will Often Utilize the Services of an Underwriter