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The underwriter has to take up

This question belongs to Commerce Financial Management
Financial Management
?

The underwriter has to take up ________________.

Answer & Solution
Correct Answer: Option B
The underwriter has to take up the unsubscribed part of the agreed portion. The underwriter undertakes the guarantee for only part of the issue offered to the public and his liability is limited to the extent of unsubscribed portion of the issue underwritten by him.
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3 Comments
Syed Kashif
Syed Kashif 8 years ago
What is the unsubscribed part of the agreed portion.
Underwriter agrees to take up activity to determine risks and charge for them are paid.
Examveda
Examveda 8 years ago
An underwriter is any party that evaluates and assumes another party's risk for a fee, such as a commission, premium, spread or interest. Underwriters operate in many aspects of the financial world, including the mortgage industry, insurance industry, equity markets, and common types of debt securities.
Jitendra Kumar
Jitendra Kumar 8 years ago
what is underwriter
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