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Banking - General Knowledge Questions
An underwriter undertakes to buy a certain number of shares or debentures irrespective of the subscription from the public. This type of underwriting is known as___________?
A)
Sub-Underwriting
B)
Firm Underwriting
C)
Outright Purchases of Issues
D)
Syndicate Underwriting

Correct Answer :   Firm Underwriting

When an underwriter undertakes to buy or subscribe a certain number of shares or debentures irrespective of the subscription from the public, it is called firm underwriting. Firm underwriting generates confidence among investors and increases the chances of success of the issue.

Published On : June 29, 2021
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