What is the role of an underwriter in an initial public offer?
A)Organise the initial public offering
B)Generate interest in the initial public offering amongst institutional investors
C)Purchase any shares not acquired by the public
D)All of the above

Question

Quizplus · Accepted Answer

An underwriter plays a crucial role in an initial public offering (IPO). They organize the IPO by working closely with the company going public to determine the offering price, the number of shares to be issued, and the timing of the offering. They also generate interest in the IPO amongst institutional investors by marketing the offering and providing research and analysis on the company. Finally, the underwriter agrees to purchase any shares not acquired by the public, thereby assuming the risk of the IPO. Therefore, all of the above are correct.

What Is the Role of an Underwriter in an Initial