Question

An agreement for the sale of securities in which the investment bank guarantees the sale by purchasing the securities from the issuer and then sells the securities in the primary is a(n) ____.

Answer 1

underwritten arrangement

Step-by-step explanation:

Underwritten arrangement -

It refers to the contract between the investment bankers who merge together to make up an underwriting group , and is responsible to issue new securities , is referred to as underwritten arrangement .

It is also referred to as underwriting potential .

The method is adapted in order to reduce any conflicts , by explaining each and every people their task and responsibilities .

Hence , from the given information of the question ,

The correct answer is underwritten arrangement .