The risk function of investment banking is categorized mainly under:
A) Underwriting Function
B) Market Maker Function
C) Advisor Function
D) Agent Function

Question

Quizplus · Accepted Answer

The risk function of investment banking is mainly categorized under the underwriting function, which involves assuming the risk of buying securities from the issuer and selling them to the investors. This function is commonly used in initial public offerings (IPOs) and other securities offerings. The market maker function involves facilitating trades between buyers and sellers, but does not involve taking on risk like underwriting does. The advisor function involves providing advice to clients on various financial transactions, but does not involve taking on risk like underwriting does. The agent function involves acting as a representative for clients in financial transactions, but does not involve taking on risk like underwriting does.

The Risk Function of Investment Banking Is Categorized Mainly Under