In firm commitment underwriting procedure, more risk is at side of

A. investment bank

B. insurance firm

C. reissuing firm

D. reselling firm

Answer: Option A

Solution(By Examveda Team)

In firm commitment underwriting procedure, more risk is at side of investment bank. An investment bank (IB) is a financial intermediary that performs a variety of services. Most Investment banks specialize in large and complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations and acting as a broker or financial adviser for institutional clients.