Underwriting Homework Help

Underwriting

The origination howsoever thoroughly done, will not, by itself, guarantee the success of an issue. To ensure success of an issue, therefore, the second specialist service–uncannily–provided by the institutional setup of the NIM takes the form of a guarantee that the issues would be sold by eliminating the risk arising from uncertainty of public response. That adequate institutional arrangement for the provision of underwriting is,of crucial Significance both to the issuing companies as well as the investing public cannot be over stressed.

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