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kogti [31]
1 year ago
7

Under firm-commitment underwriting, the _______ assumes the full risk that the shares cannot be sold to the public at the stipul

ated offering price.
Business
1 answer:
Gala2k [10]1 year ago
7 0

Under firm-commitment underwriting, the underwriter bears the entire risk that the shares will not be sold to the public at the specified offering price.

What is Underwriter?
Any person who assesses and takes on another party's risk in exchange for payment—which frequently comes in the form of a commission, premium, spread, or interest—is an underwriter. While underwriters work for insurance firms, agents and brokers represent both consumers and insurance companies. The mortgage, insurance, equity, and some prevalent forms of debt security trading are just a few of the financial industries where underwriters play a crucial part. Sometimes referred to as a book runner, a lead underwriter holds this position.

To learn more about Underwriter
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