The organization that purchases the bonds from an issuing corporation and resells them to its clients or sells the bonds for a commission is the:
A) underwriter.
B) bank.
C) stockholders.
D) bondholders.

Question

Quizplus · Accepted Answer

An underwriter is an organization that purchases the bonds from an issuing corporation and resells them to its clients or sells the bonds for a commission. Banks may also play a role in underwriting, but they are not the primary organization responsible for selling the bonds. Stockholders and bondholders are not relevant in this context, as they are investors who hold the bonds after they have been issued.

The Organization That Purchases the Bonds from an Issuing Corporation