In which case, liability arises from both open and firm underwriting
A)Partial Underwriter
B)Firm Underwriter
C)Sole Underwriter
D)Sub Underwriter

Question

Quizplus · Accepted Answer

Firm underwriting involves an underwriter agreeing to buy shares that are not sold in the initial offering, thus taking on liability for unsold shares. This means they have a liability in both open (available to the public) and firm (committed to purchasing) underwriting scenarios.

In Which Case, Liability Arises from Both Open and Firm