[amp_mcq option1=”the fixed portions of the issue capital” option2=”the unsubscribed part of the agreed portion” option3=”the agreed portion or can refuse if” option4=”the unfixed portions of the issue capital” correct=”option2″]<\/p>\n
The correct answer is: B. the unsubscribed part of the agreed portion.<\/p>\n
An underwriter is a person or organization that agrees to purchase any unsold shares of a new stock issue. This is done to ensure that the company issuing the stock is able to raise the amount of money it needs.<\/p>\n
The underwriter typically agrees to purchase a certain number of shares at a fixed price. If all of the shares are sold, the underwriter will not have to purchase any shares. However, if some of the shares are not sold, the underwriter will be obligated to purchase the unsold shares at the agreed-upon price.<\/p>\n
This is a risky proposition for the underwriter, as it is possible that the shares will not be sold at the agreed-upon price. However, underwriters typically charge a fee for their services, which helps to offset the risk.<\/p>\n
The underwriter’s obligation to purchase the unsold shares is known as the “underwriting commitment.” The underwriting commitment is typically set forth in a written agreement between the underwriter and the company issuing the stock.<\/p>\n
The underwriting commitment is an important part of the process of issuing new stock. It helps to ensure that the company is able to raise the amount of money it needs, and it also helps to protect the interests of the investors who purchase the stock.<\/p>\n
Here is a brief explanation of each option:<\/p>\n
[amp_mcq option1=”the fixed portions of the issue capital” option2=”the unsubscribed part of the agreed portion” option3=”the agreed portion or can refuse if” option4=”the unfixed portions of the issue capital” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-46875","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n