What does it mean to underwrite a share issue?

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asked Mar 25, 2023 157k views

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Algorys · Answer 1 · 2023-03-26T02:55:34+0000

In the securities market, underwriting involves determining the risk and price of a particular security. It is a process seen most commonly during initial public offerings, wherein investment banks first buy or underwrite the securities of the issuing entity and then sell them in the market.

What does it mean to underwrite a share issue?

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