Underwriting the issue takes place in which market?
A)Secondary
B)Primary
C)Seasonal
D)Credit

Question

Quizplus · Accepted Answer

Underwriting the issue primarily occurs in the primary market, where new securities are created and sold to investors for the first time. This process involves financial institutions (underwriters) guaranteeing the sale of a certain amount of the securities being issued, thus reducing risk for the issuing company.

Underwriting the Issue Takes Place in Which Market