Underwriting, however, is stop-gap arrangement to guarantee the success of an issue. The success of an issue, in the ultimate analysis, depends on the issues being acquired by the investing public. The sale of securities to the ultimate investors is referred to as distribution. It is a specialist job which can best be performed by brokers and dealers in securities, who maintain regular and direct contact with the ultimate investors.

Thus, the NIM is a complex of institutions through which funds can be obtained by those which require them from investors who have savings. The ability of the NIM to cope with the growing requirements of the expanding corporate sector would depend on the presence of specialization to perform those service-function of origination, underwriting and distribution. While the services provided by an organised NIM is the same in all developed countess ? degree 0 development and specialization of market organisation. the type of institutions found the actual procedures followed differ from country to country as they are determined partly history and partly by the particular legal social political and economic environment.

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