If an underwriter does not sell all of its clients' securities to other institutions or investors,it is generally obliged to purchase the unsold shares itself.

Name: If an underwriter does not sell all of its clients' securities to other institutions or investors,it is generally obliged to purchase the unsold shares itself.
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This is known as the underwriting agreement, which specifies that the underwriter is responsible for purchasing any unsold shares at the agreed upon price.

If an Underwriter Does Not Sell All of Its Clients