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Orlov [11]
2 years ago
11

When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the pub

lic.
Business
1 answer:
ankoles [38]2 years ago
6 0

When investment banks underwrite securities, they guarantee the value of the company's securities before selling them to the public.

Investment securities are a class of securities (transferable financial assets such as stocks and bonds) that are purchased for the purpose of being held for investment purposes.

When an investment bank and a company reach an agreement to underwrite (also known as a firm commitment), the investment bank purchases new securities at an agreed price and sells the securities generally at a premium to cover all costs. We will resell. They include costs associated with the sale.

There are four main types of securities. Bonds, equities, derivative securities, and hybrid securities that combine bonds and equities.

Learn more about investment bank at

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