A corporation often uses an underwriter to guarantee the sale of stock in an initial public offering (IPO).

Question

Quizplus · Accepted Answer

This statement is true. An underwriter is typically used by corporations to guarantee the sale of stock in an IPO. The underwriter buys the shares from the company and then sells them to the public or other investors. This ensures that the company will receive the funding it needs from the IPO.

A Corporation Often Uses an Underwriter to Guarantee the Sale