The process by which investment banks guarantee a certain price to a firm issuing stocks or bonds is known as
A) underwriting.
B) securitization.
C) proprietary trading.
D) peer-to-peer lending.

Question

Quizplus · Accepted Answer

The process described in the question is underwriting, where the investment bank guarantees a certain price at which the securities will be sold to the public. Securitization refers to the process of pooling together financial assets and creating securities backed by those assets. Proprietary trading involves a firm trading for its own account rather than on behalf of clients. Peer-to-peer lending refers to a lending model where individuals lend money to other individuals or businesses through an online platform.

The Process by Which Investment Banks Guarantee a Certain Price