BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is underwriting in which, two or more agencies or underwriters jointly underwrite an issue of
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It is one in which an underwriter gets a part of the issue further underwritten by another agency.
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It is one in which the underwriters apply for a block of securities.
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None of the Above
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Detailed explanation-1: -Which of the following clearly define the Syndicate Underwriting? It is one in which an underwriter gets a part of the issue further underwritten by another agency.
Detailed explanation-2: -Which of the following clearly define the Syndicate Underwriting? Answer: [A] It is underwriting in which, two or more agencies or underwriters jointly underwrite an issue of. Notes: Syndicate Underwriting is one in which, two or more agencies or underwriters jointly underwrite an issue of securities.
Detailed explanation-3: -It is different from a syndicate underwriting in a way that in Syndicate underwriting the underwriting firm themselves form a syndicate and represent themselves as single underwriting firm but in Joint underwriting, the issuer company itself appoint a number of firms to underwrite the issue.
Detailed explanation-4: -The objective of an underwriter syndicate is to buy the new issue from the company and sell to interested investors. Risks involved in selling new offerings of equity is spread to all members of the syndicate, thereby helping to mitigate risk that each of them can face.
Detailed explanation-5: -Underwriting simply means that your lender verifies your income, assets, debt and property details in order to issue final approval for your loan. An underwriter is a financial expert who takes a look at your finances and assesses how much risk a lender will take on if they decide to give you a loan.