Which of the following is a process by which investment bankers purchase new securities directly from the issuing company and resell them to the investors?
A) Agency marketing.
B) Underwriting.
C) Distribution.
D) Private placement.

Question

Quizplus · Accepted Answer

Underwriting is the process by which investment bankers purchase new securities directly from the issuing company and resell them to the investors. This helps the issuing company to raise capital, while the investment bankers make a profit by selling the securities to investors. Agency marketing, distribution, and private placement are different methods of selling and distributing securities to investors but do not involve investment bankers purchasing securities directly from the issuing company.

Which of the Following Is a Process by Which Investment