Question

An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.

Answer 1

buying the entire bond or stock issue a company wants to sell at an agreed discount.

Step-by-step explanation:

An investment-banking firm underwrites a new issue of stocks and bonds by buying the entire bond or stock issue a company wants to sell at an agreed discount.

Underwriting can be defined as the process through which an individual or organization assumes a financial risk at an appropriate and agreed fee.

In order to underwrite a new issue of securities such as bonds or stocks, the investment-banking firm buys the entire securities that the issuer is willing to sell at an agreed discount.