BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -While investment banks at large ensure regulatory compliance, their underwriters in specific oversee the task of analysing the demand of such stocks. Therein, they contact different institutional investors, like insurance companies and mutual funds, to evaluate a company’s IPO market demand.

Detailed explanation-2: -An underwriter is an institutional financial organization that assesses and assumes another party’s risk for a fee. Underwriters operate in the context of (1) securities offerings and (2) insurance. (1) In the context of securities offerings, an underwriter markets and sells an issuer’s securities.

Detailed explanation-3: -Underwriters in the banking sector perform the critical operation of appraising the credit worthiness of a potential customer and whether or not to offer it a loan.

Detailed explanation-4: -An underwriter will take an in-depth look at your credit and financial background in order to determine your eligibility. During this analysis, the bank, credit union or mortgage lender assesses whether you qualify for the loan before making a decision on your application.

Detailed explanation-5: -If an entity decides to raise funds through an equity or debt offering, one or more investment banks will also underwrite the securities. This means the institution buys a certain number of shares or bonds at a predetermined price and re-sells them through an exchange.